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ISCR Case 23-00634 — CASE

Case record

ISCR Case 23-00634

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

Case Profile
Decision Date1/31/2024
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Roger C. Wesley
Government Counsel: Andrew H. Henderson
Case Summary
The applicant in this case was a 59-year-old employee of a defense contractor seeking a security clearance. The Department of Defense issued a Statement of Reasons (SOR) citing financial considerations as the primary concern, alleging that the applicant failed to file federal and state tax returns for multiple years and accumulated over $102,000 in delinquent debts. The allegations fell under Guideline F, which addresses financial considerations that may affect an individual's trustworthiness.
During the proceedings, the applicant admitted to most of the allegations regarding his failure to file tax returns and acknowledged the existence of delinquent debts, attributing these issues to business losses and procrastination. He provided some documentation of his efforts to address his debts, including partial payments and settlement offers, but failed to demonstrate a comprehensive plan for resolving the majority of his financial obligations. The applicant's late tax filings were attributed to procrastination, and he could not provide sufficient evidence for the filing of several tax returns.
The administrative judge ruled against the applicant, concluding that he did not mitigate the financial concerns raised in the SOR. The judge noted that the applicant's financial issues were significant and unresolved, which raised doubts about his reliability and trustworthiness. The decision emphasized that the applicant's failure to address his debts and tax obligations adequately undermined his eligibility for access to classified information, leading to the denial of his security clearance.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
Similar decisions
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Case Headnote

ISCR Case No. 23-00634

deniedJan 31, 2024· Hon. Roger C. Wesley· hearing

Summary

A 59-year-old truck driver was denied a security clearance under Guideline F, Financial Considerations, due to significant financial instability. The Statement of Reasons detailed several allegations, including the applicant's failure to file federal tax returns for tax years 2018 through 2022, and State A tax returns for the same period. Additionally, the applicant failed to file a State B tax return for 2018.

Beyond tax non-compliance, the applicant accumulated 11 delinquent debts totaling over $102,000. The administrative judge determined that these financial issues, particularly the unresolved debts and lack of a clear plan to address them, raised serious concerns about the applicant's reliability and trustworthiness.

Ultimately, the applicant's eligibility for access to classified information was denied. The decision cited the failure to file multiple years of federal and state tax returns, the accumulation of substantial delinquent debts, most of which remained unresolved, and the absence of sufficient evidence demonstrating a plan to manage these financial obligations.

Why the Applicant Was Denied

The applicant failed to file federal and state tax returns for multiple years.
The applicant accumulated 11 delinquent debts exceeding $102,000, most of which remain unresolved.
The applicant did not provide sufficient evidence of a plan to address his financial obligations.

Conditions Referenced

Disqualifying

DC ¶ 19(f)raisedFailure 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

“Eligibility for access to classified information may only be granted "upon a finding that it is clearly consistent with the national interest to do so."”
— Exec. Or. 10865, Safeguarding Classified Information within Industry § 2 (Feb. 20, 1960), as amended.

Procedural Posture

SOR issuedMay 30, 2023
Answer filedJun 18, 2023
Hearing heldNov 29, 2023
Decision dateJan 31, 2024

Cite For

Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
Significant Delinquent Debts Impacting Security Clearance Eligibility
Insufficient Evidence of Financial Stability as a Basis for Denial of Security Clearance

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 that the applicant failed to file federal and state tax returns for multiple years and accumulated significant delinquent debts exceeding $102,000. As a result, the judge ruled against the applicant on all allegations under Guideline F, concluding that the financial considerations security concerns were not mitigated.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	failed to file his federal tax returns, as required, for tax years 2018 through 2022	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.b	failed to file his State A tax returns for tax years 2018-2022	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.c	failed to file his State B tax return for tax year 2018	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.d	accumulated 11 delinquent debts exceeding $102,000 $102,000	Against Applicant	Unspecified Financial	Admitted	—	—	—

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.