Summary
A 35-year-old former Navy service member was denied a security clearance due to unresolved financial issues, despite successfully mitigating concerns related to alcohol consumption. The Statement of Reasons cited two primary areas of concern: Guideline F (Financial Considerations) and Guideline G (Alcohol Consumption).
Under Guideline G, the applicant had a January 2013 arrest for DWI, leading to a June 2015 conviction. However, these alcohol-related concerns were successfully mitigated.
The denial stemmed from unmitigated financial issues under Guideline F. The applicant failed to file federal and state income tax returns for 2015 through 2019, stating she disagreed with the amount on her 2015 W-2, which she believed included a reenlistment bonus. Additionally, she had an unresolved delinquent debt for a reenlistment bonus received in 2014. The applicant did not provide evidence of actions taken to resolve these tax or debt issues, and her financial problems were deemed within her control and a result of her military discharge.
Why the Applicant Was Denied
- The applicant failed to file federal and state income tax returns for 2015 through 2019.
- She did not provide evidence of actions taken to resolve her delinquent debt or tax issues.
- Her financial problems were within her control and resulted from her discharge from the military.
Conditions Referenced
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File or Fraudulently Filing Annual Income Tax Returns
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago or Was InfrequentThe applicant's financial issues are ongoing and unresolved.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant's financial problems were a result of her own choices.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not provide evidence of a good-faith effort to resolve her debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the DebtThe applicant's dispute does not absolve her from filing tax returns.
Key Rule Quoted
“Failure to file tax returns suggests that an applicant has a problem with complying with well-established government rules and systems.”
Procedural Posture
- SOR issuedDec 2, 2020
- Answer filedJan 20, 2021Applicant elected to have her case decided on the written record.
- Hearing held—
- Decision dateJul 1, 2021
Cite For
- Failure to File Tax Returns as a Disqualifying Factor Under Guideline F
- Ongoing Financial Issues Impacting Security Clearance Eligibility
- Successful Mitigation of Alcohol-related Concerns Under Guideline G