Summary
A 54-year-old program and quality manager at a defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons alleged the applicant owed delinquent federal taxes for multiple years, specifically $3,326 for 2019, $5,626 for 2018, $13,392 for 2017, $13,326 for 2016, and $6,929 for 2015. The applicant admitted to owing delinquent taxes for tax years 2015-2018. Additionally, the applicant owed eight delinquent consumer debts totaling approximately $5,548.
Disqualifying conditions under Guideline F were raised, including AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f). While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e), and AG ¶ 20(g) were considered, they were not found sufficient to overcome the security concerns.
The denial was based on the applicant's unresolved federal tax debts for tax years 2015-2019, which totaled over $40,000, and approximately $5,548 in delinquent consumer debts that remained unpaid or unresolved. The applicant failed to provide documentation of payment plans or sufficient evidence of financial responsibility, leading the judge to conclude that the security concerns were not mitigated.
Why the Applicant Was Denied
- The applicant has unresolved federal tax debts for tax years 2015-2019 totaling over $40,000.
- The applicant has delinquent consumer debts totaling approximately $5,548 that remain unpaid or unresolved.
- The applicant failed to provide documentation of payment plans or evidence of financial responsibility.
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
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedThe Individual Has Received or Is Receiving Financial CounselingThe applicant stated she received some financial counseling, but evidence was insufficient to establish that her financial matters are under control.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMay 11, 2022
- Answer filedMay 27, 2022Applicant elected to have her case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateOct 26, 2022
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Insufficient Evidence of Financial Responsibility
- Failure to Mitigate Financial Concerns Despite Some Admissions of Liability