Summary
The applicant, a 39-year-old married man with a young child, faced security clearance denial under Guideline F due to unresolved financial issues, including delinquent federal student loans and medical debts. Despite some efforts to address his debts and file overdue tax returns, the administrative judge found insufficient evidence of responsible financial management, leading to the denial of his application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Delinquent on two federal student loans placed in collection in the amounts of $57,956 and $33,324 (1.a). Delinquent on 22 medical debts totaling $15,005 (1.b). Failed to file federal and state income tax returns for tax years 2018 through 2021 (1.y). Filed federal income tax returns for tax years 2018 and 2019 (1.z).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has a history of not being able to pay his debts; He failed to file his relevant federal and state income tax returns as required; The applicant did not provide proof of payments toward his medical debts alleged in the SOR.
Why the Applicant Was Denied
- The applicant has a history of not being able to pay his debts.
- He failed to file his relevant federal and state income tax returns as required.
- The applicant did not provide proof of payments toward his medical debts alleged in the SOR.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- 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
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlConditions beyond Applicant’s control, including a head-on car accident and related medical expenses, contributed to his debts.
- AG ¶ 20(c)appliedThe Individual Has Received or Is Receiving Financial CounselingApplicant has received financial counseling from a debt consolidation company.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsApplicant did not submit evidence of responsible conduct for his remaining financial issues.
Key Rule Quoted
“Eligibility for access to classified information is denied.”
Procedural Posture
- SOR issuedSep 21, 2022
- Answer filedOct 18, 2022
- Hearing heldFeb 27, 2024via video teleconference
- Decision dateNov 27, 2024
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Failure to File Tax Returns as a Disqualifying Condition
- Impact of Financial Counseling on Security Clearance Decisions