Summary
A 51-year-old defense contractor employee was denied a security clearance due to significant financial considerations under Guideline F. The Statement of Reasons detailed several unresolved financial issues, including a failure to file federal and state income tax returns for 2016 and 2018, and defaulting on two student loans totaling approximately $85,000.
Additionally, the applicant had multiple default judgments against her: $198 plus costs from a fitness club in October 2011; $2,746 plus attorney fees and costs from a landlord in March 2017; $1,900 plus attorney fees and costs from another landlord in November 2017; and $9,450 plus costs and other fees from June 2018. While five delinquent medical debts totaling about $1,850 and three miscellaneous delinquent debts totaling about $2,000 were resolved, and arrangements were made for tax filings, these actions did not sufficiently mitigate the overall financial concerns.
The denial was based on the applicant's history of financial problems, including the defaulted student loans and unpaid judgments, and the untimely filing of tax returns. These issues raised doubts about her reliability and trustworthiness, leading to the conclusion that the financial considerations security concerns were not adequately mitigated.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including defaulted student loans and unpaid judgments.
- The applicant failed to file federal and state income tax returns for 2016 and 2018 in a timely manner, raising concerns about her reliability and judgment.
- Despite some debts being resolved, the applicant's ongoing financial issues were deemed insufficiently mitigated.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile some conditions were beyond the applicant's control, the applicant did not act responsibly under the circumstances.
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant filed her 2016 tax return but failed to demonstrate timely compliance.
Key Rule Quoted
“A person who fails repeatedly to fulfill his or her legal obligations, such as filing tax returns and paying taxes when due, does not demonstrate the high degree of good judgment and reliability required of those granted access to classified information.”
Procedural Posture
- SOR issuedMay 1, 2020
- Answer filedDec 21, 2020
- Hearing heldApr 28, 2022
- Decision dateNov 29, 2022
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Failure to File Tax Returns on Security Clearance Eligibility
- Consideration of Mitigating Factors in Financial Distress Cases