Summary
A 58-year-old welder with a GED was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons alleged that the applicant deliberately failed to disclose on his Security Clearance Application (SCA) that he did not file or pay state and federal taxes for 2014 and 2015, and that he had a delinquent $276 telephone bill and a $2,788 judgment for credit card debt. Additionally, it was alleged he failed to file required state and federal income tax returns for 2014 and 2015, reporting income from company A.
The judge found that the applicant was not required to file tax returns for 2015 due to a lack of taxable income. His failure to report income from company A was based on a reasonable belief that it was not reportable. Crucially, the judge determined that the applicant did not intentionally omit relevant information from his security clearance application.
Ultimately, the judge concluded that the applicant's omissions were not deliberate and that he held a reasonable belief regarding his tax obligations. Consequently, the security clearance was granted.
Why the Applicant Prevailed
- The applicant was not required to file tax returns for 2015 due to lack of taxable income.
- The applicant's failure to report income from company A was based on a reasonable belief that it was not reportable.
- The applicant did not intentionally omit relevant information from his security clearance application.
Conditions Referenced
- AG ¶ 19(g)rejectedFailure to File Annual Federal, State, or Local Income Tax Returns as Required or the Fraudulent Filing of the SameThe Government did not meet its burden to establish that the applicant was required to report income or that he fraudulently failed to do so.
- AG ¶ 16(a)rejectedDeliberate Omission, Concealment, or Falsification of Relevant Facts From Any Personnel Security QuestionnaireThe applicant did not have intent to omit or conceal information regarding his debts or tax filings.
- AG ¶ 20(a)appliedThe Behavior Was Not Recent and the Applicant Has Taken Steps to Address His Financial Issues
- AG ¶ 20(b)appliedThe Applicant Has Shown a Good Faith Effort to Repay Debts
- AG ¶ 20(c)appliedThe Applicant Has Demonstrated Responsible Financial Behavior Since the Incidents
Key Rule Quoted
“An omission, standing alone, does not prove falsification.”
Procedural Posture
- SOR issuedNov 22, 2016
- Answer filedDec 12, 2016
- Hearing heldMar 30, 2017
- Decision dateMay 11, 2017
Cite For
- Reasonable Belief Regarding Tax Obligations Under Guideline F
- Lack of Intent to Falsify Information Under Guideline E
- Mitigating Conditions Related to Financial Responsibility and Behavior