Summary
A 56-year-old information systems security officer was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons detailed a Chapter 7 bankruptcy filed in April 2013 and discharged in July 2013.
Additionally, the applicant incurred nine delinquent debts, consisting of student loans and consumer debts, totaling $177,801. A further concern was the applicant's failure to file federal and state income tax returns for both 2019 and 2020.
The judge determined that the applicant did not provide sufficient evidence of efforts to resolve these significant financial problems or to file the outstanding tax returns. Consequently, the security concerns were not mitigated, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant has unresolved financial issues, including significant delinquent debts and failure to file tax returns.
- The applicant did not provide evidence of efforts to resolve his financial problems or file his tax returns.
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(a)rejectedBehavior Happened so Long Ago or Was InfrequentThe applicant's financial issues are ongoing and unresolved.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant did not take responsible actions to address his debts.
- AG ¶ 20(c)appliedReceived Financial CounselingThe applicant received financial counseling but did not demonstrate control over his financial issues.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant failed to show a good-faith effort to address his debts.
- AG ¶ 20(g)rejectedArrangements with Tax AuthorityThe applicant did not file his tax returns for 2019 and 2020.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 7, 2022
- Answer filedOct 12, 2022Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateFeb 13, 2023
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to Demonstrate Mitigation of Financial Concerns
- Importance of Timely Filing Tax Returns in Security Clearance Evaluations