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ISCR Case 23-01281 — CASE

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ISCR Case 23-01281

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

Case Profile
Decision Date10/30/2024
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Robert E. Coacher
Government Counsel: John C. Lynch
Case Summary
The applicant in this case was a 63-year-old employee of a defense contractor who had served 32 years in the U.S. Army and retired as a lieutenant colonel. The Defense Counterintelligence and Security Agency issued a Statement of Reasons (SOR) citing security concerns under Guideline F, related to financial considerations. The SOR alleged that the applicant had a history of bankruptcies, owed delinquent federal and state taxes, and failed to timely file tax returns for several years.
During the hearing, the applicant admitted to the allegations in the SOR, explaining that his financial difficulties stemmed from personal circumstances, including the serious illness of his wife and the deaths of close family members. He acknowledged his failure to file tax returns for multiple years and admitted to being delinquent on tax payments. However, he also indicated that he had begun to address these issues and had made arrangements to pay his tax debts. Despite this, the administrative judge found that the applicant's financial issues were not sufficiently mitigated by his explanations or actions.
The administrative judge ruled against the applicant, concluding that the financial considerations raised significant security concerns that were not adequately addressed. The judge noted that the applicant's past bankruptcies and ongoing tax issues indicated a lack of financial responsibility, which could undermine his reliability and trustworthiness in handling classified information. Consequently, the applicant's eligibility for access to classified information was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 23-01281

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

Summary

A 63-year-old retired Army lieutenant colonel and defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of unresolved financial issues. The Statement of Reasons detailed multiple allegations, including the failure to timely file federal income tax returns for 2015-2018 and state income tax returns for 2015-2021.

Additionally, the applicant owed approximately $10,385 in delinquent federal income taxes for 2015, 2016, and 2019, and about $5,650 in delinquent state income taxes for 2015 and 2019-2021. The applicant also had a Chapter 7 bankruptcy filing in approximately 1986, with debts discharged in 1987.

Despite acknowledging his financial difficulties, the applicant's explanations were deemed insufficient to mitigate concerns regarding his reliability and trustworthiness, particularly his prolonged inaction in addressing tax obligations. The decision cited the applicant's failure to timely file tax returns and his history of bankruptcies and delinquent tax payments as reasons for the denial.

Why the Applicant Was Denied

The applicant failed to timely file federal and state income tax returns for multiple years.
The applicant's financial issues included a history of bankruptcies and delinquent tax payments.
The applicant's explanations for his financial inaction were deemed insufficient to mitigate security concerns.

Conditions Referenced

Disqualifying

AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Income Tax Returns

Mitigating

AG ¶ 20(g)appliedMade Arrangements with Tax AuthoritiesThe applicant documented making continuous payments toward his federal tax debt.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedSep 14, 2023
Answer filed—
Hearing heldJul 16, 2024via Microsoft Teams
Decision dateOct 30, 2024

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Importance of Timely Tax Compliance in Security Clearance Evaluations
Impact of Financial Irresponsibility on Trustworthiness and Reliability Assessments

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 multiple financial concerns against the applicant, including failure to file tax returns and delinquent taxes owed. Despite the applicant's claims of past financial difficulties, the judge concluded that these issues were not sufficiently mitigated, resulting in a denial of the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to timely file his 2015-2021 state income tax returns.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.b	Applicant filed a Chapter 7 bankruptcy in about 1986 that resulted in a discharge of his debts in 1987.	Against Applicant	Bankruptcy Filing	Admitted	—	—	—
1.c	Applicant owed delinquent federal income taxes in the approximate amount of $10,385 for tax years 2015, 2016, and 2019. $10,385	Against Applicant	Tax Unpaid	Admitted	—	—	—
1.d	Applicant owed delinquent state income taxes in the approximate amount of $5,650 for tax years 2015 and 2019-2021. $5,650	Against Applicant	Tax Unpaid	Admitted	—	—	—
1.e	Applicant failed to timely file his 2015-2018 federal income tax returns.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.f	Applicant failed to timely file his 2015-2021 state income tax returns.	Against Applicant	Tax Filing Failure	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.