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ISCR Case 23-02386 — CASE

Case record

ISCR Case 23-02386

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

Case Profile
Decision Date8/22/2024
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Richard A. Cefola
Government Counsel: John B. Renehan, Tara R. Karoian
Case Summary
The applicant in this case was a 54-year-old real estate broker seeking a security clearance for employment with a defense contractor. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (Financial Considerations), specifically alleging the applicant's failure to timely file federal and state income tax returns from 2002 to 2022 and her outstanding tax debts totaling over $24,000.
During the proceedings, the applicant admitted to the allegations but provided some explanations regarding her circumstances. She indicated that she had filed her tax returns with the help of a tax preparer and had plans to begin making monthly payments to the tax authorities. However, she did not submit any additional documentation to support her claims or demonstrate compliance with her payment arrangements after the hearing.
The administrative judge ruled against the applicant, concluding that she failed to mitigate the financial concerns raised in the SOR. The judge noted the applicant's long history of tax delinquencies and the ongoing nature of her financial problems, which raised doubts about her reliability and trustworthiness. Ultimately, the judge determined that granting the applicant a security clearance was not clearly consistent with the national interest, resulting in a denial of her eligibility for access to classified information.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 23-02386

deniedAug 22, 2024· Hon. Richard A. Cefola· hearing

Summary

A 54-year-old real estate broker was denied security clearance eligibility under Guideline F (Financial Considerations) due to significant and unmitigated financial issues. The Statement of Reasons alleged that the applicant failed to timely file federal and state income tax returns for tax years 2002 through 2022.

Specifically, the applicant owed $13,677 in past-due federal income taxes and $10,820 in past-due state income taxes, totaling over $24,000. These issues raised Disqualifying Condition AG ¶ 19(f).

Despite the application of Mitigating Condition AG ¶ 20(g), the administrative judge determined that the applicant's failure to file tax returns for multiple years, coupled with the substantial amount of back taxes owed, demonstrated ongoing financial problems. The applicant did not present sufficient arrangements to mitigate these issues, leading to the denial of security clearance.

Why the Applicant Was Denied

The applicant failed to file tax returns for multiple years and owes significant back taxes.
The applicant did not demonstrate sufficient arrangements to mitigate her financial issues.

Conditions Referenced

Disqualifying

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.

Mitigating

AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements.The applicant's financial problems are ongoing, and she has not demonstrated that future financial problems are unlikely.

Key Rule Quoted

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

Procedural Posture

SOR issuedNov 17, 2023
Answer filed—
Hearing heldJun 13, 2024scheduled hearing
Decision dateAug 22, 2024

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Importance of Demonstrating Mitigation of Financial Concerns
Consideration of the Whole-person Concept in Security Clearance Decisions

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 timely file her Federal and state income tax returns for tax years 2002 to 2022 and owes a total of $24,497 in past-due income taxes. The applicant's financial problems were deemed ongoing, and she did not demonstrate that future financial issues were unlikely, leading to a decision against her on the financial considerations.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to timely file her Federal and state income tax returns for tax years 2002~2022.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.b	Applicant owes $13,677 in past-due Federal income taxes and $10,820 in past-due state income taxes. $24,697	Against Applicant	Tax Unpaid	Admitted	—	—	Claimed Payment Plan with IRS

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.