Summary
A 49-year-old software test engineer was denied a security clearance under Guideline F, Financial Considerations, due to significant financial issues. The Statement of Reasons detailed her failure to file federal income tax returns for tax years 2012 through 2017, and state income tax returns for tax years 2013 through 2017.
Additionally, the applicant was indebted to her state of residence for approximately $32,000 in delinquent taxes and owed the Department of Education approximately $34,634 in student loan debt that had been placed for collection. A consumer creditor account was also charged off for approximately $231. These issues raised Disqualifying Conditions related to financial irresponsibility and significant debt.
While the applicant made some efforts to address her financial situation, the judge found these actions insufficient to mitigate the security concerns. Specifically, her failure to file multiple years of tax returns and the substantial accumulated debts led to the determination that her financial situation was not stable enough to warrant a security clearance, resulting in the denial of her eligibility.
Why the Applicant Was Denied
- The applicant failed to file federal and state tax returns for tax years 2012-2017.
- The applicant accrued significant debts, including $32,000 in delinquent state taxes and $34,634 in student loan debt.
- The applicant's financial situation was deemed insufficiently stable to warrant a security clearance.
Conditions Referenced
- DC ¶ 19(a)raisedInability to Satisfy Debts
- DC ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- DC ¶ 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
- MC ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- MC ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem and Provides Documented Proof to Substantiate the Basis of the Dispute or Provides Evidence of Actions to Resolve the Issue
Key Rule Quoted
“Eligibility for access to classified information is denied.”
Procedural Posture
- SOR issuedApr 30, 2019
- Answer filedJun 3, 2019
- Hearing held—Decided on the basis of the written record.
- Decision dateSep 10, 2019
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Insufficient Financial Stability as a Basis for Denial of Security Clearance
- Importance of Timely Addressing Financial Obligations in Security Clearance Evaluations