Summary
A 64-year-old married veteran with two minor children was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from significant delinquent federal tax debts totaling approximately $101,328.15 for the tax years 2015, 2016, and 2017. Specifically, the applicant owed about $5,378 for 2015, $95,396.53 for 2016, and $553.44 for 2017. Additionally, the applicant was indebted to a state for delinquent taxes of $24,427 for tax year 2016, for which a repayment plan was in place.
The Statement of Reasons cited Disqualifying Conditions AG ¶ 19(b), AG ¶ 19(c), and AG ¶ 19(f). While Mitigating Conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(g) were considered, they were not sufficient to overcome the concerns.
The primary reasons for the denial were the applicant's admission of the substantial federal tax debt and the failure to establish a repayment plan for these federal obligations. The judge concluded that the applicant's financial situation was not under control, as there was no consistent effort demonstrated to resolve the federal tax issues.
Why the Applicant Was Denied
- The applicant admitted to owing approximately $101,328.15 in delinquent federal taxes since 2015.
- The applicant has not established a repayment plan for his federal tax debts.
- The applicant's financial situation was deemed not under control, as he failed to demonstrate a consistent effort to resolve his tax issues.
Conditions Referenced
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not provide sufficient evidence that his financial issues were beyond his control.
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate SourceThe applicant has not received financial counseling.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant has not demonstrated a consistent effort to resolve his federal tax debts.
- AG ¶ 20(g)rejectedArrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant has not established a repayment plan with the IRS.
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedFeb 15, 2021
- Answer filed—Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateSep 14, 2021
Cite For
- Denial of Security Clearance Due to Unresolved Federal Tax Debts
- Failure to Establish a Repayment Plan for Federal Taxes
- Ongoing Financial Irresponsibility as a Security Concern Under Guideline F