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ISCR Case 21-02499 — CASE

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ISCR Case 21-02499

A decided public DOHA case, shown for research — not advice or a prediction.

Case Profile
Decision Date1/20/2023
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Judge: Robert Robinson Gales
Government Counsel: Nicole A. Smith
Applicant's Counsel: Justin R. Clark
Case Summary
Applicant, a 58-year-old employee of a defense contractor, sought a security clearance but faced allegations under Guideline F (Financial Considerations) and Guideline E (Personal Conduct). The Statement of Reasons (SOR) indicated that he failed to file federal income tax returns for multiple years and misrepresented his tax filing status on his security clearance application. The SOR recommended that the case be referred to an administrative judge for a determination on his eligibility.
During the proceedings, Applicant admitted to failing to file tax returns for the years 2009 through 2013 and acknowledged that his previous claims of misunderstanding the filing requirements were incorrect. He attributed his tax issues to personal difficulties, including marital problems and financial mismanagement. Despite filing some overdue returns in December 2021, he still had significant outstanding tax obligations, estimated at $44,675, and had missed several payments under an installment agreement with the IRS. The administrative judge noted that there was no evidence of financial counseling or a clear plan to address his tax liabilities.
The administrative judge ruled against Applicant, concluding that he failed to mitigate the security concerns related to his financial issues and personal conduct. The judge emphasized that the applicant's history of tax noncompliance and misrepresentation raised significant doubts about his trustworthiness and reliability, ultimately determining that granting a security clearance was not clearly consistent with the national interest.
Guidelines Evaluated
- Guideline EPersonal Conduct · Against Applicant
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 21-02499

deniedJan 20, 2023· Hon. Robert Robinson Gales· hearing

Summary

A 58-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant failed to timely file federal income tax returns for the years 2009 through 2020, with an estimated $44,675 in unpaid federal income taxes for some of those years.

Additionally, the applicant provided false information on his SF-86 security clearance application regarding his failure to file or pay taxes. These actions raised disqualifying conditions related to personal conduct and financial considerations, specifically concerning a history of not meeting financial obligations and providing misleading information.

The judge determined that the applicant did not demonstrate the necessary reliability and trustworthiness for access to classified information. The denial was based on the applicant's lack of compliance with legal obligations, lack of candor on the application, and ongoing, unresolved financial issues.

Why the Applicant Was Denied

The applicant failed to file federal income tax returns for multiple years, indicating a lack of compliance with legal obligations.
The applicant provided false information on his security clearance application regarding his tax filings, demonstrating a lack of candor and reliability.
The applicant's financial issues were ongoing and unresolved, raising concerns about his judgment and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability to Satisfy Debts
AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Income Tax Returns

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedMay 13, 2021
Answer filedFeb 24, 2022Response included attorney's statement.
Hearing heldDec 12, 2022Conducted via Microsoft Teams.
Decision dateJan 20, 2023

Cite For

Failure to File Federal Income Tax Returns as a Disqualifying Condition Under Guideline F
False Statements on Security Clearance Applications as a Basis for Denial Under Guideline E
The Importance of Demonstrating Reliability and Trustworthiness for Access to Classified Information.

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Standardized Decision Profile

SEAD-4 Guideline E (Personal Conduct) · descriptive summary of a decided case

Posture: HearingDecided: denied

The judge found that the applicant provided false information on his SF 86 regarding his failure to file or pay federal, state, or other taxes when required by law. The applicant's actions were deemed irresponsible and did not demonstrate the reliability and good judgment required for a security clearance. Consequently, the application for a security clearance was denied.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	Applicant provided false information on his SF 86 regarding his failure to file or pay federal, state, or other taxes when required by law or ordinance.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	—	—	—

Descriptive standardized rendering of a decided public case (Guideline E). The verbatim source decision is shown in full below.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: HearingDecided: denied

The judge found that the applicant failed to timely file federal income tax returns for multiple years and owed approximately $44,675 in unpaid taxes. The applicant's actions were deemed irresponsible, leading to a denial of his security clearance due to unresolved financial issues.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to timely file his federal income tax returns for the tax years 2009 through 2020 and failed to pay an estimated $44,675 in federal income taxes for some of those years. $44,675	Against Applicant	Tax Unpaid	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.