Summary
A 54-year-old government contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The Statement of Reasons cited six delinquent consumer and medical debts totaling approximately $38,000. Additionally, the applicant failed to timely file federal and state income tax returns for the 2015 through 2018 tax years, resulting in approximately $13,450 in delinquent federal income taxes for that period.
Disqualifying conditions under Guideline F were raised, specifically 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), and AG ¶ 20(g) were applied, they were not sufficient to overcome the security concerns.
The denial was based on the applicant's unresolved financial issues, including the six delinquent debts and the failure to file required tax returns for multiple years. The applicant did not provide sufficient evidence to demonstrate that these financial issues were being resolved or were under control, leading to the conclusion that the security risks associated with his financial situation were not mitigated.
Why the applicant was denied
- The applicant had unresolved financial issues, including six delinquent debts totaling approximately $38,000.
- The applicant failed to file federal and state income tax returns for the years 2015 to 2018, despite being required to do so.
- The applicant did not provide sufficient evidence that his financial issues were being resolved or were under 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(a)rejectedThe Behavior 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 not unlikely to recur.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not act responsibly under the circumstances with respect to his delinquent debts.
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the ProblemThe applicant's financial delinquencies arose after he received 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 began to address his debts only after being placed on notice that his clearance was in jeopardy.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant has not provided evidence of a payment arrangement with the IRS.
Key rule quoted
“Failure to comply with tax laws suggests that an applicant has a problem with abiding by well-established government rules and systems.”
Procedural posture
- SOR issuedDec 18, 2020
- Answer filedDec 3, 2021
- Hearing heldNov 10, 2022
- Decision dateJan 26, 2023
Cite for
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to File Tax Returns as a Disqualifying Condition
- Lack of Evidence of Financial Rehabilitation or Resolution of Debts