Summary
The applicant, a 55-year-old truck driver, faced security clearance issues under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to unresolved financial problems, including significant federal and state tax debts. Although he did not intentionally provide false information on his security clearance application, the judge found that the financial concerns were not mitigated, leading to a denial of his security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: IRS filed federal tax lien against Applicant in 2013 for $3,190 (1.a). IRS filed federal tax lien against Applicant in 2009 for $31,126 (1.d). Delinquent medical debt for $920 (1.h). Delinquent medical debt for $380 (1.i). Telecommunications debt placed for collection for $744 (1.j). Telecommunications debt placed for collection for $87 (1.k). Delinquent medical debt for $382 (1.m). Delinquent medical debt for $180 (1.n). Judgment filed in 2009 for $876 (1.o).
The judge denied the clearance. The government raised disqualifying conditions 19(a), 19(b), 19(c), 19(f). The judge applied mitigating conditions 20(b), 20(d), 20(g). The decision turned on the following: The applicant provided insufficient evidence of resolution of his financial issues, including long-standing federal income tax debt; The applicant did not act responsibly regarding his taxes and several debts, despite some mitigating circumstances.
Why the Applicant Was Denied
- The applicant provided insufficient evidence of resolution of his financial issues, including long-standing federal income tax debt.
- The applicant did not act responsibly regarding his taxes and several debts, despite some mitigating circumstances.
Conditions Referenced
- 19(a)raisedInability to Satisfy Debts
- 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 19(c)raisedA History of Not Meeting Financial Obligations
- 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
- 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile the applicant experienced personal difficulties, he did not demonstrate responsible actions regarding his debts.
- 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's financial management did not reflect a good-faith effort to resolve his tax obligations.
- 20(g)rejectedArrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant's tax debts remained unresolved despite some payment arrangements.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJan 9, 2017
- Answer filedFeb 23, 2017
- Hearing heldJun 6, 2017Conducted via teleconference.
- Decision dateSep 20, 2017
Cite For
- Insufficient Evidence of Financial Resolution Under Guideline F
- Impact of Unresolved Tax Debts on Security Clearance Eligibility
- Consideration of Personal Conduct in Financial Matters Under Guideline E