Summary
A 58-year-old part-time employee of a DOD contractor was denied a security clearance due to significant financial concerns under Guideline F. The applicant had unresolved delinquent federal and state taxes totaling approximately $24,887, along with a history of other financial irresponsibility. Specific allegations included delinquent federal tax accounts for 2015 and 2016, totaling about $11,641, and a failure to file a federal income tax return for 2017. Additionally, the applicant owed approximately $226 in past-due state income taxes.
Further financial issues involved six delinquent accounts totaling approximately $11,022, including a $4,232 account that was charged off. Other delinquent accounts placed for collection included a $3,459 cell phone account, a $1,742 credit card account, and two smaller accounts of $175 and $146. While some efforts were made to resolve certain debts, the majority remained outstanding.
The denial was based on the applicant's unresolved delinquent federal tax debts of approximately $13,641 and other debts totaling about $11,022. The applicant's financial irresponsibility raised significant concerns regarding reliability and trustworthiness, as a sufficient track record of financial responsibility or compliance with tax obligations was not demonstrated.
Why the Applicant Was Denied
- The applicant has unresolved delinquent federal tax debts totaling approximately $13,641 and multiple other debts totaling approximately $11,022.
- The applicant's financial irresponsibility raises significant concerns about reliability and trustworthiness.
- The applicant failed to demonstrate a sufficient track record of financial responsibility or compliance with tax obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant experienced periods of unemployment and health issues that contributed to financial difficulties.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant resolved only one of the debts and failed to demonstrate a consistent effort to address the majority of outstanding debts.
- AG ¶ 20(g)appliedArrangements with Tax AuthorityThe applicant provided evidence of efforts to file the 2017 tax return, which was not received by the IRS.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedFeb 28, 2025
- Answer filedMar 10, 2025Requested decision based on written record.
- Hearing held—Decision issued without a hearing.
- Decision dateDec 17, 2025
Cite For
- Denial Based on Unresolved Financial Obligations Under Guideline F
- Consideration of Financial Irresponsibility as a Security Concern
- Impact of Tax Compliance on Security Clearance Eligibility