Summary
The applicant, a 44-year-old senior supply chain planning specialist, was denied security clearance under Guideline F due to unresolved financial issues, including failure to file federal and state income tax returns for multiple years and significant delinquent debts. Despite some efforts to address certain debts, the applicant's overall financial irresponsibility raised serious concerns about her reliability and trustworthiness, leading to the denial of her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Failed to file timely Federal income tax returns for tax years 2010, 2017, and 2018 (1.a). Delinquent Federal income tax debt of $1,355 for tax year 2014 (1.b). Delinquent Federal income tax debt of $6,238 for tax year 2015 (1.c). Delinquent Federal income tax debt of $2,480 for tax year 2016 (1.d). State income tax returns that are currently outstanding and her account is delinquent (1.e). Department of Education (DoED) student loans in the amount of $13,087 (1.f). Department of Education (DoED) student loans in the amount of $8,847 (1.g). Department of Education (DoED) student loans in the amount of $8,670 (1.h). Department of Education (DoED) student loans in the amount of $8,502 (1.i). Collection account from apartment complex in the amount of $6,283 (1.j). Charged-off account from an online university in the amount of $626 (1.k). Collection account from a payday loan company in the amount of $315 (1.l). Collection account from a fitness company for exercise equipment in the amount of $244 (1.m). Charged-off account from a credit union for an overdraft fee in the amount of $182 (1.n). Charged-off account for a voluntary vehicle repossession in the amount of $15,995 (1.o). Collection account for municipal parking ticket in the amount of $40 (1.p). Collection account for a cable bill in the amount of $526 (1.q). Collection account for a cell phone in the amount of $488 (1.r). Charged-off account for a voluntary 2010 Dodge Charger vehicle repossession in the amount of $9,836 (1.s).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The decision turned on the following: The applicant failed to file federal and state income tax returns for tax years 2010, 2017, and 2018; The applicant had significant delinquent debts totaling over $10,000 in unpaid taxes and other obligations; The applicant's financial issues were not isolated incidents and indicated a continuing course of conduct.
Why the Applicant Was Denied
- The applicant failed to file federal and state income tax returns for tax years 2010, 2017, and 2018.
- The applicant had significant delinquent debts totaling over $10,000 in unpaid taxes and other obligations.
- The applicant's financial issues were not isolated incidents and indicated a continuing course of conduct.
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 or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
Key Rule Quoted
“Failure to file tax returns suggests that an applicant has a problem with complying with well-established governmental rules and systems.”
Procedural Posture
- SOR issuedMay 4, 2020
- Answer filedMay 29, 2020
- Hearing heldJul 13, 2021via DCS video teleconference
- Decision dateAug 26, 2022
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Impact of Unresolved Tax Issues on Security Clearance Eligibility
- Importance of Timely Filing Tax Returns for Maintaining Security Clearance