ISCR Case 22-01967

Case Headnote

ISCR Case No. 22-01967

deniedMar 22, 2024· Hon. Carol G. Ricciardello· hearing

Summary

A 59-year-old military veteran was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had significant delinquent federal tax debts, including approximately $9,000 for tax year 2013 and $6,000 for tax years 2014 and 2015, which remained unpaid as of the Statement of Reasons. Additionally, the applicant failed to file federal income tax returns for at least tax year 2021.

Further, the applicant falsified material facts on an e-QIP submitted around September 27, 2021. Specifically, the applicant answered "No" when asked if they had failed to file or pay federal, state, or other taxes in the last seven years, and also denied defaulting on any type of loan in the same period, despite the outstanding tax obligations.

While some mitigating conditions were considered, the applicant failed to resolve the security concerns. The denial was based on the unmitigated delinquent tax debts and the deliberate falsification of information on the security clearance application regarding financial obligations.

Why the Applicant Was Denied

The applicant failed to mitigate security concerns related to significant delinquent tax debts totaling approximately $15,000 for tax years 2013, 2014, and 2015.
The applicant deliberately falsified information on his security clearance application regarding his financial obligations, stating he had paid all debts in full when he had not.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Income Tax Returns
AG ¶ 16(a)raisedDeliberate Omission or Falsification of Relevant Facts

Mitigating

AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlAlthough the applicant faced financial hardships, he did not act responsibly under the circumstances by failing to prioritize tax payments.
AG ¶ 20(g)appliedArrangements with Tax AuthorityThe applicant initiated an installment agreement with the IRS after the hearing.

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.”
— ISCR Case No. 15-00216 at 4 (App. Bd. Oct. 24, 2016)

Procedural Posture

SOR issuedDec 1, 2022
Answer filedNov 30, 2022
Hearing heldFeb 5, 2024Record held open until February 29, 2024.
Decision dateMar 22, 2024

Cite For

Failure to Mitigate Financial Obligations Under Guideline F
Deliberate Falsification of Information on Security Clearance Applications Under Guideline E
Impact of Financial Management 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.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	You falsified material facts on an Electronic Questionnaires for Investigations Processing (e-QIP), executed by you on or about September 27, 2021, in response to: Section 26 – Financial Record Taxes, in the last seven (7) years have you failed to file or pay federal, state, or other taxes when required by law or ordinance. You answered "No" and thereby deliberately failed to disclose those delinq	Against Applicant	Falsification Security FormFOUND DELIBERATE	Criminal Conduct	Denied	—	—	—
2.b	You falsified material facts on an Electronic Questionnaires for Investigations Processing (e-QIP), executed by you on or about September 27, 2021, in response to "Section 26 - Financial Record Delinquency Involving Routine Accounts. Other than previously listed, have any of the following happened? ...In the last seven (7) years, you defaulted on any type of loan? (Include financial obligations fo	For Applicant	Falsification Security Form	Criminal Conduct	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

You falsified material facts on an Electronic Questionnaires for Investigations Processing (e-QIP), executed by you on or about September 27, 2021, in response to: Section 26 – Financial Record Taxes, in the last seven (7) years have you failed to file or pay federal, state, or other taxes when required by law or ordinance. You answered "No" and thereby deliberately failed to disclose those delinq

Against Applicant

Falsification Security FormFOUND DELIBERATE

Criminal Conduct

Denied

—

2.b

You falsified material facts on an Electronic Questionnaires for Investigations Processing (e-QIP), executed by you on or about September 27, 2021, in response to "Section 26 - Financial Record Delinquency Involving Routine Accounts. Other than previously listed, have any of the following happened? ...In the last seven (7) years, you defaulted on any type of loan? (Include financial obligations fo

For Applicant

Falsification Security Form

Criminal Conduct

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a–1.f	6 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.g	You are indebted to the Federal Government for delinquent taxes in the approximate amount of $9,000.00 for tax year 2013. As of the date of this Statement of Reasons, the taxes remain unpaid. $9,000	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts	—	—
1.h	You are indebted to the Federal Government for delinquent taxes in the approximate amount of $6,000.00 for tax years 2014 and 2015. As of the date of this Statement of Reasons, the taxes remain unpaid. $6,000	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts	—	—
1.i	You failed to file, as required, Federal income tax returns for at least tax year 2021. As of the date of this Statement of Reasons, the tax return remains unfiled.	For Applicant	Tax Filing Failure	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a–1.f

6 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

—

1.g

You are indebted to the Federal Government for delinquent taxes in the approximate amount of $9,000.00 for tax year 2013. As of the date of this Statement of Reasons, the taxes remain unpaid.

$9,000

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

—

1.h

You are indebted to the Federal Government for delinquent taxes in the approximate amount of $6,000.00 for tax years 2014 and 2015. As of the date of this Statement of Reasons, the taxes remain unpaid.

$6,000

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

—

1.i

You failed to file, as required, Federal income tax returns for at least tax year 2021. As of the date of this Statement of Reasons, the tax return remains unfiled.

For Applicant

Tax Filing Failure

Denied

—

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Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision