Summary
The applicant, a 45-year-old seeking a security clearance for a DOD contractor position, faced financial concerns under Guideline F due to failure to file tax returns for 2020 and 2021 and debts exceeding $17,000, including multiple tax liens. The judge found that the applicant did not provide sufficient evidence to mitigate these financial issues, leading to a denial of the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Failed to file federal income tax returns for tax years 2020 and 2021 (1.a). Failed to file state income tax returns for tax years 2020 and 2021 (1.b). Owed approximately $6,072 for a charged off account (1.c). Indebted to the [State] for a tax lien entered against him in 2010 in the approximate amount of $2,705.92 (1.d). Indebted to the [State] for a tax lien entered against him in 2016 in the approximate amount of $923.72 (1.e). Indebted to the [State] for a tax lien entered against him in 2019 in the approximate amount of $5,141.54 (1.f). Indebted to the [State] for a tax lien entered against him in 2022 in the approximate amount of $2,060.18 (1.g). Indebted to [a credit card company] on an account that has been charged off in the approximate amount of $391 (1.h). Indebted to [a collection company] for an account that has been placed for collection by [a credit card company] in the approximate amount of $447 (1.i).
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). The decision turned on the following: The applicant failed to file federal and state income tax returns for 2020 and 2021; The applicant acknowledged debts totaling over $17,000, including multiple tax liens and charged-off accounts; The applicant did not provide evidence of filing tax returns or resolving debts.
Why the Applicant Was Denied
- The applicant failed to file federal and state income tax returns for 2020 and 2021.
- The applicant acknowledged debts totaling over $17,000, including multiple tax liens and charged-off accounts.
- The applicant did not provide evidence of filing tax returns or resolving debts.
Conditions Referenced
- 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
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial problems are ongoing and he failed to show any attempt to resolve his delinquent debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJul 3, 2023
- Answer filedMay 12, 2023Applicant requested a decision based on the written record.
- Hearing held—Decision made based on written record.
- Decision dateFeb 2, 2024
Cite For
- Financial Irresponsibility Under Guideline F
- Failure to Provide Evidence of Tax Filings
- Ongoing Financial Obligations and Debts as Disqualifying Factors