Summary
A 39-year-old woman was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The Statement of Reasons alleged she failed to timely file federal income tax returns for tax years 2012 through 2021, and state tax returns for 2018 and 2019. Additionally, an unpaid judgment of $294 was filed against her in 2019, and she owed approximately $14,000 in state taxes. She also disputed several delinquent medical accounts.
Disqualifying conditions under Guideline F were raised, including a history of not meeting financial obligations, an inability or unwillingness to satisfy debts, and a history of not filing tax returns. While mitigating conditions were considered, such as the financial problems being largely beyond her control and a good-faith effort to resolve the issues, these were not sufficient to overcome the concerns.
The judge ultimately denied the clearance, finding that the applicant had not demonstrated sufficient financial responsibility. As of the hearing date, she had not taken action to file her delinquent tax returns or pay her outstanding debts, including the approximately $14,000 in state taxes and the $294 judgment.
Why the Applicant Was Denied
- Failed to file federal income tax returns for tax years 2012-2021 and state tax returns for 2018-2019.
- Owes approximately $14,000 in state taxes and has an unpaid judgment of $294.
- Did not take action to file delinquent tax returns or pay her debts as of the hearing date.
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 Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe judge did not find the failure to file tax returns as a circumstance beyond her control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsApplicant did not demonstrate a good-faith effort to address her financial obligations.
Key Rule Quoted
“Once a concern arises regarding an applicant’s security clearance eligibility, there is a strong presumption against granting a security clearance.”
Procedural Posture
- SOR issuedJul 21, 2021
- Answer filedJul 22, 2021
- Hearing heldMay 18, 2022via video teleconference
- Decision dateNov 17, 2022
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Failure to File Tax Returns as a Disqualifying Condition
- Presumption Against Granting Security Clearance When Concerns Arise