Summary
A 60-year-old inspector for a Department of Defense contractor was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from her failure to file federal and state income tax returns for multiple years and outstanding tax obligations totaling approximately $21,000.
Specifically, the applicant failed to file federal and state income tax returns for tax years 2014, 2015, and 2017. Additionally, she did not fully pay her federal tax obligations for tax years 2014 through 2018. These issues raised disqualifying conditions related to financial irresponsibility.
While the applicant made partial admissions and initiated efforts to resolve her tax issues in 2019, the judge determined that her financial conduct raised significant doubts about her reliability and trustworthiness. Consequently, the security clearance was denied.
Why the applicant was denied
- The applicant failed to file federal and state income tax returns for tax years 2014, 2015, and 2017.
- The applicant owed approximately $21,000 in delinquent federal taxes and had not demonstrated a consistent effort to resolve her tax issues until 2019.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File 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 behavior was recent and frequent.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's claims of health issues did not sufficiently explain her failure to meet tax obligations.
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling From a Legitimate and Credible SourceThe applicant did not provide evidence of counseling for tax issues.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Creditors or Otherwise Resolve DebtsThe applicant's efforts to resolve tax debts were not evidenced by a track record of payments.
- AG ¶ 20(g)appliedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant had initiated an installment payment plan with the IRS but had not demonstrated compliance.
Key rule quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural posture
- SOR issuedJun 20, 2019
- Answer filedJul 17, 2019Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateDec 16, 2019
Cite for
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Financial Irresponsibility Impacting Security Clearance Eligibility
- The Importance of Demonstrating Compliance with Tax Obligations for Security Clearance Approval