Summary
A 45-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons detailed several delinquent debts, including a charged-off federal credit union debt of approximately $968, a medical account of about $911, a cell phone account for $289, and an insurance account for $183, all placed for collection.
Additionally, the applicant failed to pay federal income taxes for tax years 2016 through 2020, and for 2022. Wages were garnished for unpaid federal taxes from 2016, for unpaid rent in June 2023, and for an unpaid personal property tax of approximately $190. These issues collectively amounted to roughly $28,000 in delinquent debts and unpaid taxes.
The applicant admitted to all allegations but did not provide sufficient evidence of effective mitigation. The judge determined that the applicant failed to demonstrate a good-faith effort to resolve the financial problems, which were ongoing and unresolved at the time of the decision. Consequently, granting a security clearance was deemed inconsistent with national security interests.
Why the Applicant Was Denied
- The applicant admitted to all allegations of delinquent debts and unpaid taxes.
- The applicant failed to demonstrate a good-faith effort to resolve his financial issues.
- The applicant's financial problems were ongoing and unresolved at the time of the decision.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure 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
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant experienced periods of unemployment and personal issues that contributed to financial distress.
- 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 ArrangementsThe applicant set up a payment arrangement with the IRS, but it was not adhered to.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedFeb 21, 2024
- Answer filedMar 1, 2024
- Hearing heldFeb 6, 2025via video-teleconference
- Decision dateMay 5, 2025
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Demonstrating Effective Mitigation of Financial Concerns
- Ongoing Financial Problems as a Basis for Security Clearance Denial