Summary
A 55-year-old federal records manager and U.S. Navy veteran was denied a security clearance under Guideline F (Financial Considerations) due to over $92,000 in debts and a failure to file federal tax returns for 2017 and 2018. The Statement of Reasons detailed multiple collection and charged-off accounts, many of which the applicant settled for various amounts, including a $3,509 collection account, an $824 account settled for $464, and a $12,949 account settled for $10,359. Other settled debts included charged-off accounts for $4,440 settled for $2,519, and $5,599 settled for $2,242.
Additional allegations included a $9,702 collection account with no record of payment, a charged-off account settled for $8,494, another charged-off account with no details, and a charged-off account settled for $3,077. A collection account was settled for $831.71, and other charged-off accounts were settled, with one paid for less than the full balance. The primary disqualifying conditions raised were related to financial irresponsibility and failure to file tax returns.
While the administrative judge applied several mitigating conditions, the applicant's admitted failure to file federal tax returns for 2017 and 2018 was a significant unmitigated factor. The applicant did not provide sufficient evidence to address the security concerns related to these tax filings, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant admitted to failing to file federal tax returns for 2017 and 2018, which was a significant factor in the denial.
- Despite settling some debts, the applicant's overall financial irresponsibility raised concerns about his reliability and trustworthiness.
- The applicant did not provide sufficient evidence to mitigate the security concerns related to his tax filings.
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 as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
- AG ¶ 20(d)appliedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJan 22, 2020
- Answer filed—
- Hearing heldFeb 22, 2022via telephone conference
- Decision dateMar 29, 2022
Cite For
- Failure to File Federal Tax Returns as a Disqualifying Condition Under Guideline F
- Importance of Financial Responsibility in Security Clearance Determinations
- The Impact of Financial Distress on National Security Eligibility