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ISCR Case 24-00797 — CASE

Case record

ISCR Case 24-00797

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

Case Profile
Decision Date2/2/2026
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Ross D. Hyams
Government Counsel: Alison P. O'Connell
Case Summary
The applicant in this case was a 58-year-old analyst for a government contractor who sought a security clearance but faced allegations under Guideline F (financial considerations) due to unpaid taxes, unfiled tax returns, and delinquent debts. The Statement of Reasons (SOR) outlined multiple financial issues, including failure to file federal income tax returns for several years and various unresolved debts totaling over $20,000.
During the proceedings, the applicant admitted to the allegations but explained that his financial difficulties stemmed from job loss, his wife's unemployment, and the costs associated with supporting their children through college. He provided a monthly budget indicating that his expenses exceeded his income, and he mentioned a timeshare property that may be in foreclosure. However, he did not present sufficient evidence of efforts to resolve his tax issues or debts.
The administrative judge ruled against the applicant, concluding that he failed to mitigate the financial concerns. The judge noted that the applicant's financial problems dated back to at least 2009 and highlighted his lack of compliance with tax obligations and unresolved debts, which raised doubts about his reliability and judgment necessary for access to classified information. The judge found that none of the mitigating conditions applied, leading to the denial of the applicant's eligibility for a security clearance.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 24-00797

deniedFeb 2, 2026· Hon. Ross D. Hyams· hearing

Summary

A 58-year-old analyst was denied a security clearance under Guideline F, Financial Considerations, due to significant and unmitigated financial issues. The Statement of Reasons detailed numerous concerns, including the applicant's failure to file federal income tax returns for 2014, 2016, and 2017, and State B income tax returns for 2019 and 2022. Additionally, the applicant owed the IRS $14,514 for tax year 2018.

The applicant also had multiple delinquent debts, including several credit card accounts charged off for amounts ranging from $155 to $1,722. Other accounts were placed for collection, with balances between $180 and $966. These issues collectively raised disqualifying conditions under Adjudicative Guidelines ¶ 19(a), ¶ 19(c), and ¶ 19(f).

The denial was based on the applicant's failure to mitigate these financial concerns. The judge noted that the applicant admitted to the allegations of unfiled tax returns and unresolved debts but did not provide sufficient evidence of responsible financial behavior or concrete plans to resolve the outstanding obligations. Consequently, the judge found that these issues raised serious doubts about the applicant's reliability and trustworthiness.

Why the Applicant Was Denied

The applicant failed to mitigate financial concerns related to unpaid taxes and delinquent debts.
The applicant admitted to multiple allegations of failing to file tax returns and having unresolved debts.
The applicant did not provide sufficient evidence of responsible financial behavior or plans to resolve his debts.

Conditions Referenced

Disqualifying

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

Key Rule Quoted

“Failure to file tax returns suggests that an Applicant has a problem with complying with well-established governmental rules and systems.”
— ISCR Case No. 01-05340 at 3 (App. Bd. Dec. 5, 2002)

Procedural Posture

SOR issuedOct 2, 2024
Answer filed—Applicant answered the SOR on an unknown date.
Hearing heldDec 16, 2025Hearing was delayed due to a federal government shutdown.
Decision dateFeb 2, 2026

Cite For

Failure to Mitigate Financial Concerns Under Guideline F
Impact of Unpaid Taxes on Security Clearance Eligibility
Importance of Compliance with Tax Obligations for Trustworthiness

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 multiple financial concerns against the applicant, including unpaid taxes, unfiled tax returns, and numerous delinquent credit card debts. The applicant admitted to the allegations but failed to provide sufficient mitigation, resulting in a denial of his security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to file his 2016-2017 federal income tax returns.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.b	Applicant is indebted to the IRS for $14,514 for tax year 2018. $14,514	Against Applicant	Tax Unpaid	Admitted	—	—	—
1.c	Applicant failed to file his 2019 and 2022 State B income tax returns.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.d	Applicant has a credit card account charged off for $1,722. $1,722	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.e	Applicant has a credit card account placed for collection for $966. $966	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.f	Applicant has an account in collection for $879. $879	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Applicant has a credit card account charged off for $606. $606	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.h	Applicant has an account in collection for $449. $449	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant has a credit card account charged off for $448. $448	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.j	Applicant has an account in collection for $401. $401	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.k	Applicant has an account in collection for $180. $180	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.l	Applicant has a credit card account charged off for $155. $155	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.m	Applicant failed to file his 2014 federal income tax return.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.n	Applicant has a credit card account charged off for $682. $682	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.o	Applicant has a credit card account charged off for $444. $444	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.p	Applicant has a credit card account placed for collection for $695. $695	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.q	Applicant has a credit card account placed for collection for $516. $516	Against Applicant	Credit Card Debt	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.