Summary
A 60-year-old shipyard materiel handler and retired U.S. Navy operations specialist was denied a security clearance under Guideline F (Financial Considerations) due to a history of significant financial issues. These included failing to timely file Federal income tax returns for tax years 2011 through 2014, and state income tax returns for 2013 and 2014.
The applicant also faced multiple debts, including a state wage garnishment of $1,598 and an IRS wage garnishment of $50,698. Other financial problems included a past-due home mortgage loan of $14,640, a charged-off credit card account for $8,980, and an unsecured loan past due for $628. An IRS tax lien for $45,604 was filed against the applicant in 2011.
While some financial problems were acknowledged as beyond the applicant's control, the judge found that the applicant failed to take decisive action to resolve tax issues and did not provide sufficient evidence of financial counseling or repayment efforts. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant failed to timely file Federal and state income tax returns for multiple years.
- The applicant had a history of significant unpaid debts and garnishments of wages due to tax debts.
- The applicant did not provide sufficient documentation to support claims of resolving financial issues or compliance with tax obligations.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure 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(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedNov 21, 2016
- Answer filedJan 31, 2017
- Hearing heldJun 8, 2017
- Decision dateAug 23, 2017
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Inability to Provide Sufficient Evidence of Financial Rehabilitation
- Consideration of the Whole-person Concept in Security Clearance Determinations