Summary
A 29-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of failing to timely file federal and state income tax returns. The Statement of Reasons detailed that the applicant did not timely file federal returns for tax years 2017, 2018, and 2019. Additionally, he failed to timely file state income tax returns for State A (2017, 2018), State B (2017, 2018, 2019), and State C (2018).
The applicant admitted to some of these allegations and presented mitigating evidence, demonstrating efforts to resolve his tax issues and a commitment to future timely filings. The judge acknowledged these mitigating steps, applying conditions such as the debt being resolved, the individual having initiated a good-faith effort to resolve the debt, and the financial problems being largely beyond the person's control.
However, the judge ultimately concluded that the applicant's past failures, specifically his continued procrastination and failure to prioritize tax filing, were within his control and did not warrant a favorable security decision. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant failed to timely file federal and state income tax returns for tax years 2017, 2018, and 2019.
- The applicant's continued procrastination and failure to prioritize tax filing were within his control.
Conditions Referenced
- 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 Tax as Required.
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control.The applicant's procrastination was within his control.
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source.There is no evidence that the applicant has received financial counseling.
- 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.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 5, 2022
- Answer filedJul 5, 2022Applicant elected to have his case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateJan 19, 2023
Cite For
- Denial of Security Clearance Due to Failure to Timely File Tax Returns Under Guideline F
- Consideration of Procrastination and Its Impact on Financial Responsibility
- Importance of Demonstrating a Commitment to Timely Filing for Mitigation of Financial Concerns