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Summary

The applicant, a 31-year-old employee of a Department of Defense contractor, faced allegations under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) regarding financial issues and failure to file tax returns. The applicant successfully mitigated the financial concerns by demonstrating a good-faith effort to resolve debts and filing necessary tax returns, leading to a granted security clearance.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $13,098 charged-off automobile debt: Applicant was in a car accident. She believed the insurance company would pay for the damages. The insurance company declined coverage. Applicant recently entered into a payment plan (1.a). $7,807 delinquent medical debt: Applicant had difficulty locating this medical account. The SOR is not specific in its pleading. Applicant believed it was related to being treated for a miscarriage (1.b). $1,286 delinquent medical account: Applicant had difficulty locating this account because the SOR pleading is too broad and vague. Applicant believed this debt was paid (1.c). $749 delinquent medical account: Applicant had difficulty locating this account because the SOR pleading is too broad and vague. Applicant believed this debt was paid (1.d). $609 delinquent debt placed for collection: Applicant paid off this debt on April 7, 2021 (1.e). $596 delinquent medical account: Applicant had difficulty locating this account because the SOR pleading is too broad and vague. Applicant believed this debt was paid (1.f). $575 delinquent debt placed for collection: Applicant paid off this debt on April 7, 2021 (1.g). Failed to file Federal income tax returns for tax year 2017: Applicant filed her 2017 Federal income tax returns in 2019. She was entitled a refund of $853 and did not owe a balance (1.h). Failed to file State A income tax returns for tax year 2017: Applicant understood that she was not required to file an income tax return in State A because she resided in State B. She claims the person who filed her tax returns made a mistake (1.i). Failed to file State B income tax returns for tax year 2017: Applicant claims she filed her 2017 State B income tax return. She testified she contacted State B, who informed her she owes approximately $3,000. She set up a payment plan with State B (1.j).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(g). The decision turned on the following: The applicant demonstrated a good-faith effort to resolve delinquent debts; The applicant filed all necessary tax returns and entered into payment plans for outstanding debts; The applicant's financial issues were largely due to circumstances beyond her control, including family illnesses and a car accident.

Why the Applicant Prevailed

• The applicant demonstrated a good-faith effort to resolve delinquent debts.
• The applicant filed all necessary tax returns and entered into payment plans for outstanding debts.
• The applicant's financial issues were largely due to circumstances beyond her control, including family illnesses and a car accident.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedJan 21, 2021
• Answer filedMay 26, 2021
• Hearing heldSep 27, 2022via video-teleconference
• Decision dateNov 14, 2022

Cite For

• Mitigation of Financial Concerns Under Guideline F Due to Personal Circumstances
• Good-faith Efforts in Resolving Debts
• Successful Filing of Tax Returns as a Mitigating Factor