Summary
A 37-year-old materials handler for a defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons (SOR) alleged the applicant owed approximately $14,996 across four delinquent accounts and failed to file federal and state income tax returns from 2013 through 2019. The applicant admitted these debts in his May 2020 security clearance application and an August 2020 personal subject interview.
While the applicant claimed to have filed all federal and state tax returns for 2017-2020, stating these were the only years he had taxable income, he did not provide sufficient documentation of these filings or any efforts made to resolve his delinquent debts.
The judge found that the applicant did not provide adequate evidence to mitigate the financial concerns, concluding that the financial problems were likely to recur. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant had unresolved delinquent debts totaling approximately $14,996.
- The applicant failed to file required federal and state tax returns from 2013 to 2019.
- The applicant did not provide evidence of efforts to resolve debts or file tax returns.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial problems are recent and unresolved.
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues began due to unemployment.
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial CounselingThere is no evidence of financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not document any efforts to resolve debts.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant failed to document any arrangements with tax authorities.
Key Rule Quoted
“Eligibility for access to classified information is denied.”
Procedural Posture
- SOR issuedSep 21, 2021
- Answer filedDec 13, 2021Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateApr 27, 2022
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Provide Evidence of Financial Responsibility
- Impact of Delinquent Debts on Security Clearance Eligibility