Summary
A 42-year-old advanced manufacturing technician was denied a security clearance under Guideline F, Financial Considerations, due to significant financial issues. The Statement of Reasons alleged that the applicant failed to file federal and state tax returns for 2018 and 2019, and had 10 delinquent debts totaling $23,975. These debts included six student loan accounts totaling $6,950, an $11,194 child support account, two utility accounts totaling $1,940, and $3,891 in unpaid federal taxes for 2018 and 2019.
The applicant did not resolve any of the alleged delinquent debts, including the federal taxes, and failed to establish that these debts largely resulted from circumstances beyond his control. Disqualifying conditions under Adjudicative Guidelines Paragraphs 19(c) and 19(f) were raised.
While mitigating conditions under Adjudicative Guidelines Paragraphs 20(a), 20(b), 20(d), and 20(g) were considered, the judge found insufficient evidence to mitigate concerns regarding financial irresponsibility. The denial was based on the applicant's failure to file tax returns, the multiple delinquent debts, and the lack of demonstrated good-faith effort to resolve them, concluding that granting clearance would not align with national security interests.
Why the Applicant Was Denied
- Failed to file federal and state tax returns for 2018 and 2019.
- Has multiple delinquent debts totaling $23,975, including unpaid federal taxes and child support.
- Did not provide sufficient evidence to demonstrate a good-faith effort to resolve debts.
Conditions Referenced
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure 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)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are ongoing and unresolved.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not demonstrate that his financial issues were beyond his control.
- AG ¶ 20(d)rejectedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide evidence of a good-faith effort to resolve debts.
- AG ¶ 20(g)rejectedIndividual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsThe applicant failed to file tax returns timely and did not demonstrate compliance.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedOct 28, 2021
- Answer filedNov 16, 2021
- Hearing held—Decision based on written record.
- Decision dateJun 8, 2022
Cite For
- Denial of Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to File Tax Returns as a Disqualifying Condition
- Insufficient Evidence of Good-faith Efforts to Resolve Debts