Summary
A 41-year-old male applicant was denied a security clearance under Guideline F (Financial Considerations) due to a history of unfiled tax returns and outstanding tax debts. The Statement of Reasons detailed his failure to file federal income tax returns for tax years 2014 through 2020, with returns for 2016, 2017, and 2020 remaining unfiled. He also owed the federal government $16,000 for 2014 and $14,000 for 2015.
Similarly, the applicant failed to file state income tax returns for tax years 2014 through 2020, with 2016 and 2020 still unfiled. He was indebted to the state for $3,973 for 2014 and $3,000 for 2015. These issues raised Disqualifying Conditions AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f).
While Mitigating Conditions AG ¶ 20(b) and AG ¶ 20(g) were applied, the judge ultimately found that the applicant did not demonstrate sufficient financial responsibility or timely action to resolve his tax issues, which included over $40,000 in federal tax debt and additional state tax debts. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant failed to file federal and state income tax returns for multiple years.
- The applicant had outstanding tax debts totaling over $40,000 to the federal government and additional debts to the state.
- The applicant did not demonstrate that he acted responsibly to resolve his tax issues in a timely manner.
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
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not demonstrate that he acted responsibly under the circumstances.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant has not demonstrated that he has arranged with the IRS to resolve his outstanding federal income taxes.
Key Rule Quoted
“Eligibility for access to classified information is denied.”
Procedural Posture
- SOR issuedSep 3, 2021
- Answer filedNov 15, 2021
- Hearing heldSep 15, 2022via video teleconference
- Decision dateFeb 14, 2023
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Importance of Financial Responsibility in Security Clearance Determinations
- Insufficient Evidence of Financial Mitigation Efforts Leading to Denial of Clearance