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ISCR Case 23-01274 — CASE

Case record

ISCR Case 23-01274

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

Case Profile
Decision Date3/5/2024
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Darlene Lokey Anderson
Government Counsel: Jeff A. Nagel
Case Summary
The applicant in this case was a 56-year-old IT Specialist/Storage Specialist seeking a security clearance. The Defense Counterintelligence and Security Agency issued a Statement of Reasons (SOR) citing security concerns under Guideline F, Financial Considerations, due to the applicant's delinquent federal back taxes for the years 2010, 2011, 2017, and 2021, totaling approximately $19,000. The allegations raised questions about the applicant's reliability and trustworthiness.
During the proceedings, the applicant admitted to the tax debts and explained that his financial difficulties began in 2008 when he withdrew funds from his 401(k) to purchase a home, incurring significant tax penalties. He indicated that he had made efforts to resolve his tax issues, including attempts to set up a payment plan with the IRS, but had not been successful. The applicant acknowledged that he had not made any payments toward the debts listed in the SOR and expressed a desire to pay them off in the future.
The administrative judge ruled against the applicant, concluding that the applicant's long history of financial irresponsibility and failure to address his tax debts raised significant concerns about his reliability and judgment. The judge found that the mitigating conditions did not apply, as the applicant had not demonstrated a consistent effort to resolve his financial obligations, and thus, the applicant's current situation did not alleviate the security concerns raised by his financial history.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
Similar decisions
Other decisions whose allegations read most like this one. Descriptive similarity of the allegations only — not a prediction.
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Case Headnote

ISCR Case No. 23-01274

deniedMar 5, 2024· Hon. Darlene Lokey Anderson· hearing

Summary

A 56-year-old IT Specialist was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent federal tax debts. The applicant owed approximately $19,000 to the Federal Government for back taxes from the years 2010, 2011, 2017, and 2021. Specifically, these debts included $2,516.94 for 2010, $8,141.56 for 2011, $4,708 for 2017, and $3,000 for 2021.

The applicant admitted to these debts and stated he had attempted to establish a payment plan with the IRS. However, he had not made any payments towards resolving the outstanding tax obligations.

The judge determined that the applicant's failure to make payments demonstrated a lack of good faith effort to resolve his debts. This financial irresponsibility raised concerns regarding his reliability and trustworthiness, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has significant delinquent federal taxes totaling approximately $19,000, which he has not paid.
The applicant admitted to the allegations but failed to demonstrate a good faith effort to resolve his debts.
The applicant's financial irresponsibility raises concerns about his reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness 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 or Failure to Pay Annual Federal, State, or Local Income Tax as Required

Key Rule Quoted

“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
— AG ¶ 18

Procedural Posture

SOR issuedJul 6, 2023
Answer filedOct 23, 2023
Hearing heldJan 18, 2024
Decision dateMar 5, 2024

Cite For

Financial Irresponsibility as a Disqualifying Factor Under Guideline F
Failure to Demonstrate Good Faith Efforts to Resolve Debts
The Impact of Unresolved Tax Liabilities 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.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: HearingDecided: denied

The applicant has multiple delinquent tax debts owed to the Federal Government totaling approximately $19,000 for the tax years 2010, 2011, 2017, and 2021. The judge ruled against the applicant on all allegations, concluding that the applicant did not mitigate the financial concerns raised.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant is indebted to the Federal Government for delinquent back taxes in the amount of $2,516.94 for tax year 2010. $2,516	Against Applicant	Tax Unpaid	Admitted	—	—	Claimed Other
1.b	Applicant is indebted to the Federal Government for delinquent back taxes in the amount of $8,141.56 for tax year 2011. $8,141	Against Applicant	Tax Unpaid	Admitted	—	—	Claimed Other
1.c	Applicant is indebted to the Federal Government for delinquent back taxes in the amount of $4,708 for tax year 2017. $4,708	Against Applicant	Tax Unpaid	Admitted	—	—	Claimed Other
1.d	Applicant is indebted to the Federal Government for delinquent back taxes in the amount of $3,000 for tax year 2021. $3,000	Against Applicant	Tax Unpaid	Admitted	—	—	Claimed Other

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.