Summary
The applicant, a 48-year-old Navy veteran, faced security concerns under Guideline F due to failure to file income tax returns for 2011 and 2012 and several delinquent debts. He successfully mitigated these concerns by demonstrating compliance with tax obligations and financial stability, leading to a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: failed to file, as required, his federal income tax returns for the 2011 and 2012 tax years (1.a). owed $5,500 for the 2011 and 2012 tax years (1.b). owed two delinquent debts for $363 (1.c). owed two delinquent debts for $119 (1.d).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(f), AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(g). The decision turned on the following: Applicant filed his overdue tax returns for 2011 and 2012 and is now current on all tax obligations; He resolved a credit card delinquency and demonstrated financial stability with a monthly surplus after meeting all obligations; The judge found that the applicant's past financial issues did not reflect his current judgment and reliability.
Why the Applicant Prevailed
- Applicant filed his overdue tax returns for 2011 and 2012 and is now current on all tax obligations.
- He resolved a credit card delinquency and demonstrated financial stability with a monthly surplus after meeting all obligations.
- The judge found that the applicant's past financial issues did not reflect his current judgment and reliability.
Conditions Referenced
- 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 ¶ 19(a)raisedInability to Satisfy Debts.
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations.
- AG ¶ 20(a)appliedThe 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)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control.
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.
- AG ¶ 20(g)appliedThe 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
“A security clearance decision is intended only to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedAug 30, 2016
- Answer filed—
- Hearing heldMar 8, 2017
- Decision dateJul 24, 2017
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of Personal Circumstances Affecting Financial Conduct
- Importance of Demonstrating Current Financial Stability for Security Clearance