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ISCR Case 20-03701 — CASE

Case record

ISCR Case 20-03701

A decided public DOHA case, shown for research — not advice or a prediction.

Case Profile
Decision Date12/1/2022
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Juan J. Rivera
Government Counsel: Andrea M. Corrales
Case Summary
the IRS had not assigned his delinquent tax obligations to a collection agency, he would have been able to resolve his financial issues. The Statement of Reasons (SOR) alleged security concerns under Guideline F (financial considerations), primarily due to the applicant's failure to file federal and state income tax returns for tax years 2014 through 2019 and his significant tax debts.
The applicant admitted to several allegations in the SOR, including owing delinquent taxes to the IRS and the state, as well as being past due on a car note and a charged-off bank account. He denied failing to file tax returns for the specified years, claiming he had hired an accountant to assist with his filings. However, he later acknowledged that he did not have a payment agreement with the IRS and had not made the payments he claimed. The applicant attributed his financial difficulties to various personal circumstances, including his divorce and periods of unemployment.
The administrative judge ruled against the applicant, concluding that the evidence presented was insufficient to mitigate the financial concerns. The judge noted the applicant's admissions of debt and failure to file taxes, as well as the lack of credible evidence demonstrating a consistent effort to resolve his financial issues. Consequently, the applicant's request for a security clearance was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 20-03701

deniedDec 1, 2022· Hon. Juan J. Rivera· hearing

Summary

The applicant, a 63-year-old male with a history of military service, sought security clearance under Guideline F but was denied due to failure to file federal and state income tax returns for multiple years and significant delinquent tax obligations. The judge found insufficient evidence of financial responsibility and ongoing compliance issues, leading to the unfavorable outcome.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: failed to file, as required, Federal and state income tax returns for TY 2014 through 2019 (1.a). is past-due on a car note with a balance of $8,867 (1.b). owes $4,407 in child support (1.c). owes $618 to a bank for a charged-off account (1.d). owes $474 to a credit union for a charged-off account (1.e). owes the IRS $45,390 in delinquent taxes for TY 2012 - 2015 and TY 2017 – 2019 (1.f). owes his state $9,661 in delinquent taxes (1.g).

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: Failed to file federal and state income tax returns for tax years 2014-2019; Owes the IRS $45,390 in delinquent taxes for tax years 2012-2015 and 2017-2019; Did not establish a payment agreement with the IRS prior to the hearing; Admitted to making false statements regarding payment agreements with the IRS.

Why the Applicant Was Denied

Failed to file federal and state income tax returns for tax years 2014-2019.
Owes the IRS $45,390 in delinquent taxes for tax years 2012-2015 and 2017-2019.
Did not establish a payment agreement with the IRS prior to the hearing.
Admitted to making false statements regarding payment agreements with the IRS.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability to Satisfy Debts
AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
AG ¶ 19(f)appliedFailure to File Annual Federal, State, or Local Income Tax Returns

Key Rule Quoted

“Failure to file tax returns suggests that an applicant has a problem with complying with well-established governmental rules and systems.”
— ISCR Case No. 01-05340 at 3 (App. Bd. Dec. 20, 2002)

Procedural Posture

SOR issuedApr 9, 2021
Answer filedApr 23, 2021
Hearing heldMay 31, 2022
Decision dateDec 1, 2022

Cite For

Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
Insufficient Evidence of Financial Responsibility Leading to Denial of Clearance
False Statements Regarding Financial Obligations Impacting Credibility

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: HearingDecided: denied

The judge found multiple financial concerns under Guideline F, including failure to file tax returns and various debts. While some debts were found to be mitigated, the overall financial situation was deemed inconsistent with national security interests, leading to a denial of the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	failed to file, as required, Federal and state income tax returns for TY 2014 through 2019	Against Applicant	Tax Filing Failure	Denied	—	—	—
1.b	is past-due on a car note with a balance of $8,867 $8,867	Against Applicant	Auto Loan Debt	Admitted	—	—	—
1.c	owes $4,407 in child support $4,407	For Applicant	Child Support Debt	Denied	—	—	—
1.d	owes $618 to a bank for a charged-off account $618	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.e	owes $474 to a credit union for a charged-off account $474	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.f	owes the IRS $45,390 in delinquent taxes for TY 2012 - 2015 and TY 2017 – 2019 $45,390	Against Applicant	Tax Unpaid	Admitted	—	—	—
1.g	owes his state $9,661 in delinquent taxes $9,661	For Applicant	Tax Unpaid	Admitted	—	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.