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ISCR Case 21-02855 — CASE

Case record

ISCR Case 21-02855

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

Case Profile
Decision Date7/24/2023
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Carol G. Ricciardello
Government Counsel: Brittany C. M. White
Case Summary
The applicant in this case was a 42-year-old individual who had served in the military and held a security clearance since approximately 2015. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F, related to financial considerations, specifically the applicant's failure to file federal income tax returns from 2015 through 2022 and his failure to pay taxes owed for certain years.
During the proceedings, the applicant admitted to the allegations in the SOR, explaining that he had procrastinated in filing his tax returns due to various personal circumstances, including misplaced W-2 forms and a busy schedule. He provided evidence of filing his tax returns for 2015 through 2020 in August 2021 and made payments on the associated tax debts. However, he had not filed his 2021 and 2022 tax returns by the time of the hearing, despite being reminded of his obligations. The applicant acknowledged his responsibility to file taxes on time and had hired an accountant to assist him.
The administrative judge ruled against the applicant, concluding that he failed to mitigate the security concerns related to his financial issues. The judge noted that the applicant's repeated failures to file tax returns and pay taxes raised questions about his reliability and trustworthiness, which are critical for access to classified information. The judge emphasized that the applicant's financial difficulties were not sufficiently resolved and that the ongoing nature of his tax filing issues indicated a lack of good judgment, leading to the denial of his eligibility for access to classified information.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
Similar decisions
Other decisions whose allegations read most like this one. Descriptive similarity of the allegations only — not a prediction.
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Case Headnote

ISCR Case No. 21-02855

deniedJul 24, 2023· Hon. Carol G. Ricciardello· hearing

Summary

A 42-year-old military veteran was denied a security clearance under Guideline F, Financial Considerations, due to a pattern of unaddressed tax obligations. The Statement of Reasons cited the applicant's failure to timely file federal and state income tax returns from 2015 through 2022, specifically noting the unfiled 2017 federal return. Additionally, the applicant failed to timely pay federal taxes for the 2018 tax year, amounting to $1,763.

These issues raised disqualifying conditions under Adjudicative Guideline Paragraph 19(f). While mitigating conditions under Paragraph 20(g) were considered, they were not sufficient to overcome the concerns. The judge determined that the applicant's repeated failures to meet tax obligations, coupled with a lack of legitimate explanations for his procrastination, created significant doubts about his reliability and trustworthiness.

Despite some payments made towards his tax debts, the ongoing disregard for these responsibilities led to the denial of the security clearance.

Why the Applicant Was Denied

The applicant failed to timely file federal income tax returns from 2015 to 2022.
The applicant failed to pay federal taxes for 2018, raising concerns about his reliability and trustworthiness.
The applicant's procrastination and repeated failures to meet tax obligations were not mitigated by any legitimate explanations.

Conditions Referenced

Disqualifying

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 Taxes as Required.

Mitigating

AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements.The applicant filed his delinquent tax returns and made payments towards his tax debts.

Key Rule Quoted

“Someone who fails repeatedly to fulfill his or her legal obligations does not demonstrate the high degree of good judgment and reliability required of those granted access to classified information.”
— DOHA Appeal Board in ISCR Case No. 12-10933

Procedural Posture

SOR issuedJun 23, 2022
Answer filedJun 28, 2022
Hearing heldJun 29, 2023
Decision dateJul 24, 2023

Cite For

Failure to Mitigate Financial Considerations Under Guideline F
Repeated Failures to Fulfill Tax Obligations as a Disqualifying Factor
Application of AG ¶ 20(g) in the Context of Tax Compliance

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 F · descriptive summary of a decided case

Posture: HearingDecided: denied

The applicant faced financial concerns under Guideline F due to failures to file and pay federal income taxes. The judge ruled against the applicant on all allegations, concluding that the applicant failed to mitigate the security concerns related to his financial issues.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to timely file his 2015 through 2022 federal and state income tax returns.	Against Applicant	Tax Filing Failure	Admitted	—	(g) arrangements made with the tax authority; in compliance	Claimed Other
1.b	Applicant failed to timely pay his federal taxes for tax year 2018 in the amount of $1,763. $1,763	Against Applicant	Tax Unpaid	Admitted	—	(g) arrangements made with the tax authority; in compliance	Claimed Other
1.c	Applicant failed to file his 2017 federal income tax return.	Against Applicant	Tax Filing Failure	Admitted	—	(g) arrangements made with the tax authority; in compliance	Claimed Other

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.