ISCR Case 24-00225

Case Headnote

ISCR Case No. 24-00225

deniedApr 9, 2025· Hon. Darlene Lokey Anderson· hearing

Summary

A 40-year-old Aircraft Structures Mechanic was denied a security clearance under Guideline F (Financial Considerations) due to significant and long-standing financial issues. The applicant had approximately $18,377.15 in delinquent medical debts and federal tax liabilities.

The financial concerns included multiple medical debts, some incurred after emergency surgery when the applicant lacked insurance. These debts, ranging from $100 to approximately $21,799, were largely unpaid and subsequently removed from his credit report due to age. Additionally, the applicant owed federal back taxes for multiple years, totaling approximately $18,377.15. For tax years 2014 and 2015, he claimed unawareness of the debts until 2023. For tax years 2018 through 2021, he deliberately filed exempt in 2017 to avoid paying taxes. While arrangements were recently made to begin paying the IRS debt in April 2025, the judge found this insufficient.

The denial was based on the applicant's long history of failing to address financial obligations, demonstrating a lack of good judgment and responsibility. The judge concluded that the applicant had not made sufficient progress in resolving his debts or mitigating the government's security concerns.

Why the Applicant Was Denied

The applicant has a long history of not addressing financial obligations, specifically medical debts and federal taxes.
The applicant's actions demonstrated a lack of good judgment and responsibility regarding financial matters.
The applicant failed to show sufficient progress in resolving his debts or mitigating the government's security concerns.

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.”

Procedural Posture

SOR issuedMar 14, 2024
Answer filedAug 31, 2024
Hearing heldMar 11, 2025
Decision dateApr 9, 2025

Cite For

Financial Irresponsibility as a Disqualifying Factor Under Guideline F
Failure to Mitigate Financial Concerns in Security Clearance Cases
The Importance of Addressing Financial Obligations for 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.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of approximately $21,799. This is a medical debt that Applicant incurred when he had to have emergency surgery. Applicant did not have medical insurance. He did not pay the debt. It has been removed from his credit report. $21,799	Against Applicant	Medical Debt	Denied	—	—	—
1.b	Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of approximately $2,107. This is a medical debt that Applicant incurred when he had to have emergency surgery. Applicant did not have medical insurance. He did not pay the debt. It has been removed from his credit report. $2,107	Against Applicant	Medical Debt	Denied	—	—	—
1.c	Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $681. This is a medical debt Applicant incurred. This debt was removed from Applicant's credit report because it was an old debt. Applicant may have initially made a payment of $40 or $50 towards the debt. $681	Against Applicant	Medical Debt	Denied	—	—	—
1.d	Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $360. This is a medical debt Applicant incurred. The debt was removed from Applicant's credit report because it was an old debt. Applicant may have initially made a payment of $40 or $50 towards the debt. $360	Against Applicant	Medical Debt	Denied	—	—	—
1.e	Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $305. This is a medical debt Applicant incurred. The debt was removed from Applicant's credit report because it was an old debt. Applicant may have initially made a payment of $40 or $50 towards the debt. $305	Against Applicant	Medical Debt	Denied	—	—	—
1.f	Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $121. This is a medical debt that Applicant incurred when he had to have emergency surgery. Applicant did not have medical insurance. He did not pay the debt. It has been removed from his credit report. $121	Against Applicant	Medical Debt	Denied	—	—	—
1.g	Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $100. This was a medical debt that Applicant incurred when he had to have emergency surgery. Applicant did not have medical insurance. He did not pay the debt. $100	Against Applicant	Medical Debt	Denied	—	—	—
1.h	Applicant is indebted to the Federal Government for delinquent taxes in the approximate amount of $26.30 for tax year 2014. Applicant stated that he uses a tax preparer who is a friend of his mother's to prepare his income tax returns. He stated that he was not aware that he owed back taxes for tax year 2014, until he checked the IRS website in 2023, when he completed DOHA interrogatories. $26	Against Applicant	Tax Unpaid	Unknown	—	—	—
1.i	Applicant is indebted to the Federal Government for delinquent taxes in the amount of approximately $1,410.48 for tax year 2015. Applicant stated that he uses a tax preparer who is a friend of his mother's to prepare his income tax returns. He stated that he was not aware that he owed back taxes for tax year 2015, until he checked the IRS website in 2023, when he completed DOHA interrogatories. $1,410	Against Applicant	Tax Unpaid	Unknown	—	—	—
1.j	Applicant is indebted to the Federal Government for delinquent taxes in the amount of approximately $1,016.04 for tax year 2018. In 2017, Applicant deliberately filed exempt to avoid paying taxes. He currently owes a total of $18,377.15 in Federal back taxes to the IRS. He recently made arrangements with the IRS to start paying off the debt in April 2025. $1,016	Against Applicant	Tax Unpaid	Unknown	—	—	—
1.k	Applicant is indebted to the Federal Government for delinquent taxes in the amount of approximately $4,111.36 for tax year 2019. In 2017, Applicant deliberately filed exempt to avoid paying taxes. He currently owes a total of $18,377.15 in Federal back taxes to the IRS. He recently made arrangements with the IRS to start paying off the debt in April 2025. $4,111	Against Applicant	Tax Unpaid	Unknown	—	—	—
1.l	Applicant is indebted to the Federal Government for delinquent taxes in the amount of approximately $3,997.49 for tax years 2020. In 2017, Applicant deliberately filed exempt to avoid paying taxes. He currently owes a total of $18,377.15 in Federal back taxes to the IRS. He recently made arrangements with the IRS to start paying off the debt in April 2025. $3,997	Against Applicant	Tax Unpaid	Unknown	—	—	—
1.m	Applicant is indebted to the Federal Government for delinquent taxes in the amount of approximately $5,297.54 for tax years 2021. In 2017, Applicant deliberately filed exempt to avoid paying taxes. He currently owes a total of $18,377.15 in Federal back taxes to the IRS. He recently made arrangements with the IRS to start paying off the debt in April 2025. $5,297	Against Applicant	Tax Unpaid	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of approximately $21,799. This is a medical debt that Applicant incurred when he had to have emergency surgery. Applicant did not have medical insurance. He did not pay the debt. It has been removed from his credit report.

$21,799

Against Applicant

Medical Debt

Denied

—

1.b

Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of approximately $2,107. This is a medical debt that Applicant incurred when he had to have emergency surgery. Applicant did not have medical insurance. He did not pay the debt. It has been removed from his credit report.

$2,107

Against Applicant

Medical Debt

Denied

—

1.c

Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $681. This is a medical debt Applicant incurred. This debt was removed from Applicant's credit report because it was an old debt. Applicant may have initially made a payment of $40 or $50 towards the debt.

$681

Against Applicant

Medical Debt

Denied

—

1.d

Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $360. This is a medical debt Applicant incurred. The debt was removed from Applicant's credit report because it was an old debt. Applicant may have initially made a payment of $40 or $50 towards the debt.

$360

Against Applicant

Medical Debt

Denied

—

1.e

Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $305. This is a medical debt Applicant incurred. The debt was removed from Applicant's credit report because it was an old debt. Applicant may have initially made a payment of $40 or $50 towards the debt.

$305

Against Applicant

Medical Debt

Denied

—

1.f

Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $121. This is a medical debt that Applicant incurred when he had to have emergency surgery. Applicant did not have medical insurance. He did not pay the debt. It has been removed from his credit report.

$121

Against Applicant

Medical Debt

Denied

—

1.g

Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $100. This was a medical debt that Applicant incurred when he had to have emergency surgery. Applicant did not have medical insurance. He did not pay the debt.

$100

Against Applicant

Medical Debt

Denied

—

1.h

Applicant is indebted to the Federal Government for delinquent taxes in the approximate amount of $26.30 for tax year 2014. Applicant stated that he uses a tax preparer who is a friend of his mother's to prepare his income tax returns. He stated that he was not aware that he owed back taxes for tax year 2014, until he checked the IRS website in 2023, when he completed DOHA interrogatories.

$26

Against Applicant

Tax Unpaid

Unknown

—

1.i

Applicant is indebted to the Federal Government for delinquent taxes in the amount of approximately $1,410.48 for tax year 2015. Applicant stated that he uses a tax preparer who is a friend of his mother's to prepare his income tax returns. He stated that he was not aware that he owed back taxes for tax year 2015, until he checked the IRS website in 2023, when he completed DOHA interrogatories.

$1,410

Against Applicant

Tax Unpaid

Unknown

—

1.j

Applicant is indebted to the Federal Government for delinquent taxes in the amount of approximately $1,016.04 for tax year 2018. In 2017, Applicant deliberately filed exempt to avoid paying taxes. He currently owes a total of $18,377.15 in Federal back taxes to the IRS. He recently made arrangements with the IRS to start paying off the debt in April 2025.

$1,016

Against Applicant

Tax Unpaid

Unknown

—

1.k

Applicant is indebted to the Federal Government for delinquent taxes in the amount of approximately $4,111.36 for tax year 2019. In 2017, Applicant deliberately filed exempt to avoid paying taxes. He currently owes a total of $18,377.15 in Federal back taxes to the IRS. He recently made arrangements with the IRS to start paying off the debt in April 2025.

$4,111

Against Applicant

Tax Unpaid

Unknown

—

1.l

Applicant is indebted to the Federal Government for delinquent taxes in the amount of approximately $3,997.49 for tax years 2020. In 2017, Applicant deliberately filed exempt to avoid paying taxes. He currently owes a total of $18,377.15 in Federal back taxes to the IRS. He recently made arrangements with the IRS to start paying off the debt in April 2025.

$3,997

Against Applicant

Tax Unpaid

Unknown

—

1.m

Applicant is indebted to the Federal Government for delinquent taxes in the amount of approximately $5,297.54 for tax years 2021. In 2017, Applicant deliberately filed exempt to avoid paying taxes. He currently owes a total of $18,377.15 in Federal back taxes to the IRS. He recently made arrangements with the IRS to start paying off the debt in April 2025.

$5,297

Against Applicant

Tax Unpaid

Unknown

—

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Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision