Summary
A 50-year-old former Air Force staff sergeant was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed primarily from his failure to timely file federal and state income tax returns for tax years 2017, 2018, and 2019. Additionally, he had a child-support debt of $6,312 placed for collection and a debt of $1,151 from an apartment lease also placed for collection.
The applicant did not disclose his failure to file tax returns for 2017 and 2018. While some debts were resolved, and he refuted certain personal conduct allegations, his financial irresponsibility, particularly regarding the unfiled tax returns and child-support debt, raised significant concerns about his reliability and trustworthiness.
Despite the application of several mitigating conditions, the applicant did not provide sufficient evidence to alleviate the financial concerns. The decision concluded that his failure to timely file tax returns and the child-support debt demonstrated financial irresponsibility, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Failed to timely file federal and state income tax returns for tax years 2017, 2018, and 2019.
- Child-support debt raised concerns about financial irresponsibility and reliability.
- Did not provide sufficient evidence to mitigate financial concerns.
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 or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“Failure to file tax returns suggests that an applicant has a problem with complying with well-established governmental rules and systems.”
Procedural Posture
- SOR issuedJul 20, 2021
- Answer filedSep 23, 2021
- Hearing heldDec 2, 2021via Microsoft Teams
- Decision dateJan 31, 2022
Cite For
- Denial of Security Clearance Due to Failure to File Tax Returns Under Guideline F
- Financial Irresponsibility as a Disqualifying Factor
- Refutation of Personal Conduct Allegations Under Guideline E