Summary
A 56-year-old defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons alleged the applicant owed approximately $40,000 in unpaid federal taxes and about $40,000 in unpaid state taxes. Additionally, it was alleged that the applicant falsified material facts on his Electronic Questionnaires for Investigations Processing (e-QIP) by deliberately failing to report these delinquent federal income taxes.
Disqualifying conditions were raised under AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(f), and AG ¶ 16(a). Mitigating conditions, including AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(g), were applied.
Ultimately, the clearance was denied because the applicant had significant unpaid taxes to both federal and state authorities and falsified financial information on his security clearance application. The judge found a lack of candor and a history of financial irresponsibility, which raised doubts about the applicant's reliability and trustworthiness.
Why the applicant was denied
- The applicant had significant unpaid taxes to both the IRS and state authorities.
- The applicant falsified financial information on his security clearance application.
- The applicant's history of financial irresponsibility raised doubts about his reliability and trustworthiness.
Conditions referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate Source
- AG ¶ 20(d)rejectedInitiated and Adhered to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(g)rejectedMade Arrangements with Tax Authority to File or Pay the Amount Owed
Key rule quoted
“The protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedJan 8, 2021
- Answer filedFeb 9, 2021
- Hearing heldOct 26, 2021continued and reconvened on 2022-01-21
- Decision dateFeb 7, 2022
Cite for
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Falsification of Information on Security Clearance Applications Under Guideline E
- Lack of Candor During the Security Clearance Process as a Disqualifying Factor.