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ISCR Case 24-00976 — CASE

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ISCR Case 24-00976

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

Case Profile
Decision Date4/17/2025
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Richard A. Cefola
Government Counsel: Aubrey M. De Angelis
Case Summary
The applicant in this case was a 45-year-old employee of a defense contractor who sought a security clearance. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (Financial Considerations), specifically alleging that the applicant failed to file federal and state income tax returns for the years 2021 and 2022 and owed approximately $4,300 in delinquent federal taxes.
During the hearing, the applicant admitted to the allegations regarding the failure to file tax returns and acknowledged the tax debt. He explained that personal circumstances, including family losses, contributed to the delays in filing. While he provided evidence that he had filed his federal tax returns post-hearing, he did not submit documentation regarding his state tax filings or evidence of compliance with his payment plan to the IRS. The administrative judge found that the applicant had not sufficiently mitigated the financial concerns, as he failed to demonstrate that future financial issues were unlikely.
Ultimately, the administrative judge ruled against the applicant, concluding that the evidence raised questions about his reliability and trustworthiness. The judge determined that granting the security clearance was not clearly consistent with national interest, resulting in a denial of eligibility for access to classified information.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 24-00976

deniedApr 17, 2025· Hon. Richard A. Cefola· hearing

Summary

A 45-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to concerns about unfiled tax returns and outstanding tax debt. The Statement of Reasons alleged that the applicant and his wife failed to file federal and state income tax returns in a timely manner for tax years 2021 and 2022. Additionally, the applicant admitted to owing approximately $4,300 in delinquent federal taxes for tax years 2021 through 2023.

The administrative judge found that the applicant admitted to these allegations. Disqualifying conditions under AG ¶ 19(f) were raised. While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), and AG ¶ 20(g) were considered, they were not found sufficient to resolve the security concerns.

The denial was based on the applicant's failure to provide evidence of compliance with tax obligations and to demonstrate that future financial problems are unlikely. Consequently, the applicant did not adequately mitigate the security concerns, leading to the denial of the security clearance.

Why the Applicant Was Denied

The applicant failed to file state income tax returns timely and did not provide evidence of compliance with tax obligations.
The applicant did not demonstrate that future financial problems are unlikely, failing to mitigate the security concerns.

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(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual's Current Reliability, Trustworthiness, or Good Judgment.
AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control.
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.

Key Rule Quoted

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

Procedural Posture

SOR issuedOct 24, 2024
Answer filed—
Hearing heldMar 4, 2025The hearing was convened as scheduled.
Decision dateApr 17, 2025

Cite For

Failure to File State Income Tax Returns Under Guideline F
Insufficient Evidence to Mitigate Financial Concerns
Importance of Demonstrating Compliance with Tax 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.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: HearingDecided: denied

The judge found that the applicant failed to file his Federal and State income tax returns in a timely manner and is indebted to the Federal Government for delinquent taxes totaling approximately $4,300. The judge ruled against the applicant on the allegations regarding the state tax returns and the delinquent federal taxes, while finding in favor of the applicant on the failure to file federal tax returns due to the submission of documentation showing those taxes have been filed.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admits that he and his wife failed to file their Federal income tax returns in a timely manner for tax years 2021 and 2022.	For Applicant	Tax Filing Failure	Admitted	—	—	Claimed Debt Paid in Full
1.b	Applicant admits that he and his wife failed to file their State income tax returns in a timely manner for tax years 2021 and 2022.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.c	Applicant admits that he is indebted to the Federal Government for delinquent taxes, in the approximate amount of $4,300, for Tax Years 2021 through 2023. $4,300	Against Applicant	Tax Unpaid	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.