Summary
The applicant, a 55-year-old defense contractor employee, faced security clearance denial under Guideline F due to unresolved financial issues, including multiple delinquent debts and failure to file tax returns for several years. Despite some mitigating circumstances, the judge found the applicant's financial problems ongoing and indicative of poor judgment, concluding that granting clearance would not align with national interest.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Failed to timely file Federal income tax returns for tax years 2018 and 2021 (1.a). Owed $528 federal tax debt for delinquent taxes for tax year 2018 (1.b). Owed $467 federal tax debt for delinquent taxes for tax year 2019 (1.c). Failed to timely file state income tax returns for tax years 2018 and 2021 (1.d). Owed $4,142 delinquent credit card account placed for collection (1.e). Owed $3,692 debt owed to an apartment complex placed for collection (1.f). Owed $1,548 charged-off credit card account (1.g). Owed $1,446 delinquent credit card account placed for collection (1.h). Owed $1,413 delinquent debt owed to an apartment complex placed for collection (1.i). Owed $1,070 delinquent credit card account placed for collection (1.j). Owed $1,040 delinquent credit card account that was charged off (1.k). Owed $968 delinquent credit card account placed for collection (1.l). Owed $652 delinquent credit card account that was charged off (1.m). Owed $463 delinquent medical account that was placed for collection (1.n). Owed $394 delinquent credit card account placed for collection (1.o). Owed $300 delinquent student loan account that was placed for collection (1.p). Owed $294 delinquent student loan account that was placed for collection (1.q). Owed $179 delinquent cable television account that was placed for collection (1.r). Home mortgage loan that went into foreclosure in 2016; the balance owed, if any, is unknown (1.s). Failed to timely file, as required, your federal and state income tax returns for tax year 2022 (1.t).
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(g). The decision turned on the following: The applicant has a history of financial problems and delinquent debts; The applicant failed to timely file federal and state income tax returns for tax years 2018, 2021, and 2022; The applicant's financial issues are ongoing and cast doubt on her reliability and judgment.
Why the Applicant Was Denied
- The applicant has a history of financial problems and delinquent debts.
- The applicant failed to timely file federal and state income tax returns for tax years 2018, 2021, and 2022.
- The applicant's financial issues are ongoing and cast doubt on her reliability and judgment.
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 Largely Beyond the Person's ControlThe applicant experienced periods of unemployment and significant health issues.
- AG ¶ 20(g)appliedArrangements with Tax AuthorityThe applicant filed her 2018 federal and state income tax returns.
Key Rule Quoted
“A person who fails repeatedly to fulfill his or her legal obligations does not demonstrate the high degree of good judgment and reliability required of those granted access to classified information.”
Procedural Posture
- SOR issuedJan 18, 2023
- Answer filedJan 20, 2023
- Hearing heldNov 15, 2023via video-teleconference
- Decision dateFeb 28, 2024
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Failure to File Tax Returns on Security Clearance Eligibility
- Consideration of Ongoing Financial Problems as Indicative of Poor Judgment