CASE · Clearance Adjudication Search EngineCASE

Loading case…

ISCR Case 21-02293 — CASE

Case record

ISCR Case 21-02293

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

Case Profile
Decision Date1/24/2024
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Carol G. Ricciardello
Government Counsel: Tara R. Karoian
Case Summary
The applicant in this case was a 70-year-old individual who had held a security clearance since approximately 1976 and had been employed by a federal contractor since 2002. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F, related to financial considerations, primarily due to the applicant's failure to file federal and state income tax returns from 2013 to 2019. The applicant admitted to the allegations, attributing his non-filing to neglect and stating that he believed he did not owe taxes, except for possible penalties.
The administrative judge found that the applicant had a history of financial irresponsibility, including unpaid taxes and homeowner association dues, which he admitted were due to negligence. Although the applicant claimed to be working with a tax service to resolve his tax issues and stated that he had sufficient income and assets, he did not provide corroborating evidence of his claims or demonstrate that he had taken substantial steps to mitigate the financial concerns. Ultimately, the administrative judge ruled against the applicant, concluding that he failed to mitigate the security concerns under Guideline F, resulting in a denial of eligibility for access to classified information. The judge emphasized the importance of financial responsibility in maintaining trust and confidence in individuals granted access to sensitive information.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
- 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. 21-02293

deniedJan 24, 2024· Hon. Carol G. Ricciardello· hearing

Summary

A 70-year-old applicant with a long history of security clearance was denied a new clearance under Guideline F (Financial Considerations). The denial stemmed from several financial issues, including a failure to file federal and state income tax returns from 2013 through 2019, which the applicant attributed to neglect.

Further concerns included a history of unpaid Homeowners Association (HOA) dues and federal tax liens, with wages previously garnished for unpaid taxes. Although the applicant's home was foreclosed upon in 2018, the mortgage and HOA dues were subsequently paid off.

Despite claims of resolving some debts, the judge found insufficient evidence to demonstrate the applicant's compliance with tax obligations or the comprehensive resolution of outstanding financial issues. These factors collectively led to the denial of the security clearance application.

Why the Applicant Was Denied

Applicant failed to file federal and state income tax returns from 2013 to 2019 due to neglect.
Applicant has a history of unpaid HOA dues and federal tax liens, indicating financial irresponsibility.
Insufficient evidence was provided to demonstrate compliance with tax obligations or resolution of debts.

Conditions Referenced

Disqualifying

AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of Ability to Do So
AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
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 government rules and systems.”
— ISCR Case No. 14-04437 at 3 (App. Bd. Apr. 15, 2016)

Procedural Posture

SOR issuedMay 4, 2022
Answer filedApr 10, 2023
Hearing heldAug 16, 2023Canceled at applicant's request; hearing converted to decision on written record.
Decision dateJan 24, 2024

Cite For

Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
Insufficient Evidence of Financial Responsibility Leading to Denial of Security Clearance
Impact of Financial Irresponsibility on Security Clearance Eligibility

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: Decision on RecordDecided: denied

The judge found multiple financial concerns against the applicant, including failure to file tax returns and unpaid tax liens. However, the applicant was found to have mitigated one allegation regarding a foreclosure by paying off the mortgage and HOA dues.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to file his 2013 through 2019 federal and state income tax returns due to neglect.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.b	Applicant has a history of not meeting financial obligations, including unpaid HOA dues.	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.c	Applicant has federal tax liens and has had his wages garnished for unpaid taxes. $20,890	Against Applicant	Tax Unpaid	Unknown	—	—	—
1.d	Applicant's home was foreclosed upon in 2018, but he paid off the mortgage and HOA dues. $76,890	For Applicant	Mortgage or Home Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Debt Paid in Full
1.e	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	—	—	—

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.