CASE · Clearance Adjudication Search EngineCASE

Loading case…

ISCR Case 20-01419 — CASE

DOHA Record Explorer

ISCR Case 20-01419

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

Case Profile
Decision Date5/19/2024
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Robert Robinson Gales
Government Counsel: Andre M. Gregorian
Case Summary
The applicant in this case was a 63-year-old sheet metal worker employed by a defense contractor, who had previously served in the U.S. Air Force and held a secret clearance. The Defense Office of Hearings and Appeals (DOHA) reviewed his application for a security clearance after the Defense Counterintelligence and Security Agency (DCSA) issued a Statement of Reasons (SOR) citing concerns under Guideline F (financial considerations). The SOR detailed the applicant's failure to file federal income tax returns for multiple years and his delinquent tax payments totaling approximately $30,000.
During the proceedings, the applicant admitted to the allegations in the SOR, explaining that his failure to file was due to personal circumstances, including his wife's health issues. He claimed to be working with a tax resolution company, although it was revealed that he had only contacted them once and had not hired them. The applicant acknowledged his financial mismanagement and admitted to not making payments on his tax debts, despite having some savings. He expressed an understanding of the seriousness of his situation but did not provide sufficient evidence of efforts to resolve his tax issues.
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 admissions and lack of substantial evidence demonstrating a proactive approach to resolving his tax debts did not support a finding that granting a security clearance was consistent with the national interest. Consequently, the applicant's eligibility for a security clearance was denied.
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.
Finding similar decisions…

Case Headnote

ISCR Case No. 20-01419

deniedMay 19, 2024· Hon. Robert Robinson Gales· hearing

Summary

A 63-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from his failure to file federal income tax returns for the years 2014 through 2018 and his failure to pay approximately $30,000 in federal income taxes during that period.

The Statement of Reasons highlighted that the applicant had never established an installment agreement with the IRS nor made any payments toward his delinquent taxes. His reported income suggested an ability to pay, but his expenditures on non-essential items raised questions about his willingness to address his tax obligations. The applicant admitted his actions were irresponsible and that he only began to address his financial situation when preparing for a security clearance review.

Ultimately, the administrative judge concluded that the applicant had not taken adequate or timely steps to resolve his tax issues, indicating a lack of judgment and reliability. Therefore, granting a security clearance was deemed inconsistent with national interest.

Why the Applicant Was Denied

The applicant failed to file federal income tax returns for the years 2014 through 2018.
He acknowledged his financial irresponsibility but did not take adequate steps to resolve his tax issues.
The applicant's financial problems were not under control, raising concerns about his judgment and reliability.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability to Satisfy Debts
AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required

Key Rule Quoted

“Failure to file tax returns suggests that an applicant has a problem with complying with well-established governmental rules and systems.”
— ISCR Case No. 01-05340 at 3 (App. Bd. Dec. 20, 2002)

Procedural Posture

SOR issuedSep 14, 2020
Answer filedundated
Hearing heldMay 3, 2022via Microsoft Teams
Decision dateMay 19, 2024

Cite For

Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
Insufficient Evidence of Financial Responsibility Impacting Security Clearance
Judgment and Reliability Concerns Due to Financial Issues

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 that the applicant failed to file federal income tax returns for multiple years and did not make payments on his delinquent taxes, totaling approximately $30,000. The applicant's financial issues were deemed not under control, leading to a decision against granting the security clearance.

¶	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 2014 through 2018 and failed to make his federal income taxes during the same period. $30,000	Against Applicant	Tax Filing Failure	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	Claimed Other
1.b	Applicant has never had an installment agreement with the IRS and has not made any payments for his delinquent income taxes. $0	Against Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—
1.c	Applicant's reported income information seemingly negates any inability to pay his debts, but his general attitude regarding his 'toys' and his expenditures for things other than his federal income taxes raise questions as to an unwillingness to pay his delinquent federal income taxes. $0	Against Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—
1.d	Applicant acknowledged that his actions were stupid, and that he paid no attention to his situation until he started preparing his SF 86 in anticipation of a security clearance eligibility review. $0	Against Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—
1.e	Applicant has not acted responsibly by failing to more timely and aggressively address his federal income tax issues. $0	Against Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—

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.