Summary
A 57-year-old avionics technician with a background in the defense industry was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from significant tax delinquencies, including $32,000 owed to the IRS for tax years 2011, 2012, and 2013, and approximately $6,500 owed to a state taxing authority.
The applicant attributed these financial issues to a layoff. While he attempted to establish a payment plan with the IRS, the judge found insufficient evidence of responsible financial management or resolution of the debts. Disqualifying conditions related to overdue debts and a history of not meeting financial obligations were raised.
Despite the applicant's efforts to address the issues, the denial was based on his ongoing history of delinquent taxes since 2011, his failure to demonstrate responsible financial management after regaining employment in 2014, and the fact that the agreed-upon IRS payment plan had not yet commenced. These factors led to doubts about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has a history of delinquent back taxes that began in 2011 and continued to the present.
- He failed to demonstrate responsible management of his financial obligations after regaining employment in 2014.
- The applicant's financial problems are ongoing, and he has not yet started the agreed payment plan with the IRS.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not demonstrate that he acted reasonably or responsibly after regaining employment.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authorities to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsThe applicant has not yet started the payment plan.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedOct 5, 2016
- Answer filedNov 1, 2016
- Hearing heldJan 19, 2017
- Decision dateJul 5, 2017
Cite For
- Financial Responsibility Under Guideline F
- Impact of Ongoing Tax Issues on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Security Clearance Decisions