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ISCR Case 23-00275 — CASE

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ISCR Case 23-00275

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

Case Profile
Decision Date4/30/2024
Statusdenied
LevelHEARING
TypeADP POSITION
Participants
Applicant Representation: Pro Se
Judge: Robert E. Coacher
Government Counsel: Jeff A. Nagel
Case Summary
The applicant in this case was a 49-year-old employee of a federal contractor who sought a public trust position. The Defense Counterintelligence and Security Agency issued a Statement of Reasons (SOR) citing trustworthiness concerns under Guideline F, specifically related to financial considerations. The SOR alleged that the applicant had accumulated 19 delinquent debts totaling approximately $33,400 and failed to timely file federal and state tax returns for multiple years, which raised significant concerns about his reliability and judgment.
During the proceedings, the applicant admitted to most of the allegations in the SOR, attributing his financial difficulties to personal illnesses and a layoff during the COVID-19 pandemic. He acknowledged procrastination in addressing his debts and tax issues but claimed to have initiated some payment plans with the IRS and state tax authorities. However, he did not provide documentation to support his claims of disputing the debts or evidence of consistent efforts to resolve them, aside from one settled debt.
The administrative judge ruled against the applicant, concluding that he had not sufficiently mitigated the financial concerns raised. The judge noted that the applicant's debts were recent and numerous, casting doubt on his trustworthiness. Although the applicant had taken some steps to address his tax obligations, the overall lack of proactive measures to resolve his debts and the timing of his actions—primarily occurring after the issuance of the SOR—did not demonstrate a good-faith effort. Consequently, the applicant's eligibility for access to sensitive information was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 23-00275

deniedApr 30, 2024· Hon. Robert E. Coacher· hearing

Summary

A 49-year-old federal contractor was denied a security clearance due to financial considerations under Guideline F. The Statement of Reasons detailed 19 delinquent debts totaling approximately $33,400. Additionally, the applicant failed to timely file federal tax returns for 2020 and 2021, and state B income tax returns for 2019-2021. The applicant also owed $1,671 in delinquent taxes to state A and approximately $2,771 to the IRS for tax year 2018.

Disqualifying conditions related to financial irresponsibility were raised, and while one mitigating condition was applied, it was insufficient to overcome the concerns. The judge found that the applicant had accumulated numerous delinquent debts and failed to file multiple tax returns.

Crucially, the applicant did not provide documentation to dispute the debts or demonstrate a consistent effort to resolve them. Consequently, the judge determined that the applicant did not exhibit sufficient financial responsibility, leading to the denial of eligibility for access to sensitive information.

Why the Applicant Was Denied

The applicant accumulated 19 delinquent debts totaling approximately $33,400.
The applicant failed to timely file federal and state tax returns for multiple years.
The applicant did not provide documentation to dispute the debts or demonstrate a consistent effort to resolve them.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns

Mitigating

AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant established a payment plan with the IRS for delinquent taxes.

Key Rule Quoted

“A person who seeks access to sensitive information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural Posture

SOR issuedMay 10, 2023
Answer filedJun 19, 2023
Hearing heldJan 22, 2024via video teleconference
Decision dateApr 30, 2024

Cite For

Denial of Eligibility Due to Financial Irresponsibility Under Guideline F
Impact of Multiple Delinquent Debts on Trustworthiness
Failure to File Tax Returns as a Disqualifying Condition

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 significant financial concerns under Guideline F, including numerous delinquent debts and failures to file tax returns. Despite some efforts to address his tax obligations, the overall financial situation was deemed insufficiently mitigated, resulting in a decision against the applicant.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant accumulated 19 delinquent debts totaling approximately $33,400. $33,400	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.t	Applicant failed to timely file his federal tax returns for tax years 2020 and 2021.	For Applicant	Tax Filing Failure	Admitted	(a) inability to satisfy debts	—	—
1.u	Applicant owes state A $1,671 for delinquent taxes. $1,671	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly	Documented Payment Plan with IRS
1.v	Applicant owes the IRS for unpaid taxes in the approximate amount of $2,771 for tax year 2018. $2,771	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly	Documented Payment Plan with IRS
1.w	Applicant failed to file his 2019-2021 state B income tax returns.	Against Applicant	Tax Filing Failure	Admitted	(a) inability to satisfy debts	—	—

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.