Summary
A 56-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a consistent failure to file federal income tax returns. The Statement of Reasons cited six separate allegations, each detailing a failure to file federal income tax returns for the tax years 2010 through 2015.
The applicant admitted that his failure to file was due to negligence and stated he had hired a tax preparer. However, he did not provide any evidence demonstrating that these tax issues had been resolved or were under control. Disqualifying conditions AG ¶ 19(c) and AG ¶ 19(f) were raised, while mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(g) were considered.
Ultimately, the clearance was denied because the applicant failed to file federal income tax returns for six consecutive years, admitted negligence, and did not provide evidence of resolution or compliance with his tax obligations, raising concerns about his reliability and judgment.
Why the Applicant Was Denied
- Applicant failed to file federal income tax returns for six consecutive years.
- Applicant admitted that his failure to file was due to negligence.
- Applicant did not provide evidence showing that his tax issues were resolved or under control.
Conditions Referenced
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's failure to file was recent and not infrequent.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant admitted his failure to file was due to negligence.
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial CounselingApplicant submitted no evidence showing that his tax problem has been resolved.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax AuthorityApplicant provided no evidence of arrangements with the IRS.
Key Rule Quoted
“No one has a 'right' to a security clearance.”
Procedural Posture
- SOR issuedDec 23, 2016
- Answer filedJan 12, 2017Requested decision based on written record without a hearing.
- Hearing held—No hearing; decision based on written record.
- Decision dateOct 13, 2017
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Negligence in Financial Matters Impacting Security Clearance Eligibility
- Lack of Evidence to Mitigate Financial Concerns in Security Clearance Cases