Summary
The applicant, a 58-year-old senior quality inspector, faced security clearance denial under Guideline F due to significant financial issues, including a federal income tax debt of approximately $90,000 and multiple bankruptcies. Despite providing some mitigating information regarding her financial difficulties, the applicant failed to demonstrate sufficient progress in resolving her tax debts, leading the judge to conclude that granting a security clearance was not consistent with national security interests.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant filed for bankruptcy under Chapter 13 of the Bankruptcy Code in March 2018, and this bankruptcy was dismissed in August 2018 (1.a). She and her husband jointly filed for bankruptcy under Chapter 13 of the Bankruptcy Code in September 2018, and this bankruptcy was dismissed in May 2019 (1.b). Applicant failed to pay her federal income taxes when due for tax years (TY) 2007, 2008, 2009, 2015, and 2016, and she owes the federal government about $91,490 for those five TYs (1.c). Applicant owes $2,531 for TY 2018 and $4,244 for TY 2019 (1.d). Applicant has a charged-off debt for $493 (1.e). Applicant's mortgage is past due in the amount of $1,678 with a total balance of $68,366 (1.f).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has a federal income tax debt of approximately $90,000 and has not established a payment plan; The applicant failed to demonstrate timely efforts to resolve her tax debts and maintain contact with the IRS.
Why the Applicant Prevailed
- The applicant provided mitigating information regarding her financial difficulties, including circumstances beyond her control.
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(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial CounselingThe applicant did not provide evidence of ongoing financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not prove timely efforts to resolve her tax debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedOct 18, 2021
- Answer filedMar 7, 2022
- Hearing heldMay 12, 2022via Microsoft Teams
- Decision dateJul 22, 2022
Cite For
- Denial of Security Clearance Due to Unresolved Tax Debts Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Consideration of Mitigating Circumstances in Financial Issues for Clearance Cases