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ISCR Case 22-02373 — CASE

Case record

ISCR Case 22-02373

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

Case Profile
Decision Date12/21/2023
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Carol G. Ricciardello
Government Counsel: Mark D. Lawton
Case Summary
The applicant in this case was a 44-year-old individual seeking a security clearance, facing allegations under Guideline F, which pertains to financial considerations. The Statement of Reasons (SOR) outlined concerns regarding the applicant's failure to file federal and state income tax returns for multiple years and significant delinquent tax debts totaling approximately $37,646 to the federal government and an indeterminate amount to the state.
During the proceedings, the applicant admitted to all allegations in the SOR. He explained that his financial difficulties stemmed from a series of unfortunate events, including job loss and family emergencies. The applicant had previously filed for Chapter 13 bankruptcy but withdrew due to increased payment obligations. He claimed to have made efforts to address his debts, including hiring a credit company for assistance, although he later deemed that company ineffective. He also provided evidence of a new debt relief agreement post-hearing, indicating a commitment to resolving his financial issues.
The administrative judge ruled against the applicant, concluding that he failed to sufficiently mitigate the security concerns related to his financial situation. The judge noted that while the applicant had made some progress in addressing certain debts, the overall pattern of financial irresponsibility, including the unfiled tax returns and unresolved debts, raised significant doubts about his reliability and trustworthiness. Consequently, the applicant's eligibility for access to classified information was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 22-02373

deniedDec 21, 2023· Hon. Carol G. Ricciardello· hearing

Summary

A 44-year-old high school graduate was denied a security clearance under Guideline F (Financial Considerations) due to significant and ongoing financial issues. The applicant failed to file federal and state income tax returns for tax years 2019, 2020, 2021, and 2022, with these returns remaining unfiled as of the Statement of Reasons.

Furthermore, the applicant was indebted to the Federal Government for approximately $37,646 in delinquent taxes for tax years 2019, 2020, and 2021, which remained unpaid. He also owed an indeterminate amount in delinquent state taxes for the same years. These issues raised disqualifying conditions related to financial irresponsibility and a history of not meeting financial obligations.

While the applicant made some efforts to address his debts, the judge found that his financial management demonstrated poor judgment, specifically noting his prioritization of investments in his wife's business over paying his creditors. This pattern of behavior led to the denial of his security clearance, as it raised serious concerns about his reliability and trustworthiness.

Why the Applicant Was Denied

The applicant failed to file federal and state income tax returns for several years.
He owed significant delinquent taxes totaling approximately $37,646.
The applicant prioritized investments in his wife's business over paying his creditors, demonstrating poor financial judgment.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
AG ¶ 19(f)raisedFailure to File Income Tax Returns

Mitigating

AG ¶ 20(g)appliedArrangements with Tax AuthorityThe applicant has a payment plan for his state taxes.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedDec 14, 2022
Answer filedJan 10, 2023
Hearing heldOct 31, 2023
Decision dateDec 21, 2023

Cite For

Failure to Mitigate Financial Concerns Under Guideline F
Impact of Financial Management on Reliability and Trustworthiness
Importance of Timely Filing Tax Returns in Security Clearance Evaluations.

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 judge found multiple financial concerns under Guideline F, including failure to file federal and state income tax returns for several years and significant unpaid tax debts. Ultimately, the judge ruled against the applicant on these allegations, concluding that the applicant failed to mitigate the security concerns related to his financial situation.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.m	You failed to file, as required, Federal income tax returns in a timely manner for tax years 2019, 2020, 2021 and 2022. As of the date of this Statement of Reasons, the tax returns remain unfiled.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.n	You failed to file, as required, State of [X] income tax returns in a timely manner for tax years 2019, 2020, 2021, and 2022. As of the date of this Statement of Reasons, the tax returns remain unfiled.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.o	You are indebted to the Federal Government for delinquent taxes in the approximate amount of $37,646 for tax years 2019, 2020, and 2021. As of the date of this Statement of Reasons, the taxes remain unpaid. $37,646	Against Applicant	Tax Unpaid	Admitted	—	—	—
1.p	You are indebted to the State of [X] for delinquent taxes in an indeterminate amount for tax years 2019, 2020, and 2021. As of the date of this Statement of Reasons, the taxes remain unpaid.	Against Applicant	Tax Unpaid	Admitted	—	—	—

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.