Summary
A security clearance applicant, representing himself, was denied clearance due to unresolved financial issues under Guideline F (Financial Considerations), despite successfully mitigating concerns under Guideline G (Alcohol Consumption). The Statement of Reasons detailed several financial allegations.
These allegations included filing for Chapter 7 bankruptcy in January 2017 and receiving a discharge. The applicant also failed to timely file federal income tax returns for 2013-2016 and failed to timely pay federal income taxes due for 2013, 2015, and 2016. Additionally, he failed to file regional income tax returns for 2014 through 2016, owing $740 in regional income taxes for 2013, and delinquent taxes of $452 for 2013, $797 for 2015, and $502 for 2016.
The denial was based on the applicant's financial irresponsibility, which raised significant security concerns. He had unresolved financial issues, including two Chapter 7 bankruptcies and delinquent taxes, and did not demonstrate a good-faith effort to resolve his debts.
Why the Applicant Was Denied
- The applicant's financial irresponsibility raised significant security concerns.
- He had unresolved financial issues, including two Chapter 7 bankruptcies and delinquent taxes.
- The applicant did not demonstrate a good-faith effort to resolve his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- 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 File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure 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 recent bankruptcy and ongoing tax issues do not support this condition.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile some conditions were beyond his control, the applicant did not act responsibly to resolve his debts.
- 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's bankruptcy does not constitute a good-faith effort to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not dispute his federal and municipal tax debts.
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant had not filed his municipal tax returns or paid the municipal taxes.
Key Rule Quoted
“A security clearance adjudication is not a tax-enforcement procedure. It is an evaluation of an individual’s judgment, reliability, and trustworthiness.”
Procedural Posture
- SOR issuedMar 12, 2018
- Answer filedMay 4, 2018Applicant requested a decision on the written record.
- Hearing heldJun 26, 2019Decision was made after remand.
- Decision dateOct 10, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Mitigation of Alcohol Consumption Concerns Under Guideline G
- Evaluation of Financial Irresponsibility Impacting Security Clearance Eligibility