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ISCR Case 23-02849 — CASE

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ISCR Case 23-02849

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

Case Profile
Decision Date5/1/2024
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Carol G. Ricciardello
Government Counsel: Jeffrey T. Kent
Case Summary
The applicant in this case was a 50-year-old individual employed by a federal contractor since March 2020, who sought a security clearance but faced allegations under Guideline F, concerning financial considerations. The Statement of Reasons (SOR) indicated that the applicant failed to timely file his federal income tax returns for the years 2019 through 2022 and his 2019 state income tax return. The applicant admitted to the failure to file the federal returns but claimed he anticipated receiving refunds and did not prioritize filing due to not owing taxes.
The administrative judge found that the applicant had indeed failed to file his federal income tax returns on time, as evidenced by IRS transcripts. Although the applicant provided some documentation showing that he eventually filed the delinquent returns, he did not adequately explain the delays in filing. The judge noted that the applicant's past behavior raised concerns about his reliability and judgment, which are critical for safeguarding classified information. Ultimately, the administrative judge ruled against the applicant, denying eligibility for access to classified information, citing the failure to mitigate the security concerns related to his financial irresponsibility.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 23-02849

deniedMay 1, 2024· Hon. Carol G. Ricciardello· hearing

Summary

A 50-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to a pattern of unfiled tax returns. The Statement of Reasons alleged that the applicant failed to timely file federal income tax returns for 2019 through 2022, and a state income tax return for 2019. These issues raised disqualifying conditions under Adjudicative Guideline (AG) ¶ 19(f).

The administrative judge found that the applicant failed to file federal income tax returns for 2019, 2020, and 2021. The applicant rationalized these failures by stating he expected refunds, which raised concerns about his reliability and judgment. Despite promises to file on time, the applicant continued to delay submissions, demonstrating a pattern of non-compliance with legal obligations.

While mitigating conditions under AG ¶ 20(g) were considered, the judge concluded that the applicant's repeated disregard for filing obligations did not meet the standards required for access to classified information. Consequently, the security clearance was denied.

Why the Applicant Was Denied

The applicant failed to file federal income tax returns for 2019, 2020, and 2021, raising reliability concerns.
The applicant's rationalization for not filing tax returns indicated a lack of judgment and compliance with legal obligations.
Despite promises to file on time, the applicant continued to delay submissions, demonstrating a pattern of non-compliance.

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)appliedThe 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 filed his overdue tax returns, but this was insufficient to mitigate the security concerns.

Key Rule Quoted

“Failure to file tax returns suggests that an applicant has a problem with complying with well-established government rules and systems.”
— ISCR Case No. 14-04437 at 3 (App. Bd. Apr. 15, 2016)

Procedural Posture

SOR issuedJan 5, 2024
Answer filedJan 29, 2024
Hearing held—Applicant elected to have his case decided on the written record.
Decision dateMay 1, 2024

Cite For

Failure to Mitigate Financial Concerns Under Guideline F
Reliability Issues Stemming From Failure to Comply with Tax Obligations
Pattern of Non-compliance with Legal Obligations Affecting 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: Decision on RecordDecided: denied

The judge found against the applicant on financial considerations due to his failure to timely file federal and state income tax returns from 2019 to 2022. Despite the applicant's claims of having filed the returns and discharged the debt, the judge concluded that his repeated disregard for compliance with tax laws raised significant security concerns.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to timely file his 2019 through 2022 federal income tax returns and his 2019 state income tax return.	Against Applicant	Tax Filing Failure	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	Applicant failed to timely file his 2019 state income tax return.	Against Applicant	Tax Filing Failure	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—

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.