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ISCR Case 17-00252.h1 — CASE

ISCR Case 17-00252.h1granted

Case Headnote

ISCR Case No. 17-00252.h1

grantedJul 6, 2017· Hon. Robert E. Coacher· hearing

Summary

This security clearance decision involved an applicant facing concerns under Guideline F (Financial Considerations) due to tax liabilities and a past bankruptcy. The Statement of Reasons detailed several financial issues, including a federal tax liability, state tax debts for 2013 and 2015, a mortgage deficiency debt, and a Chapter 7 bankruptcy from 2003.

The applicant, representing herself, successfully mitigated these concerns. She resolved her federal tax liability through an offer and compromise agreement finalized in June 2017. For state taxes, she paid the 2015 debt and established a payment plan for the remaining 2013 liability. Additionally, the applicant provided proof of settlement for a mortgage deficiency debt.

The applicant's Chapter 7 bankruptcy from 2003 was considered remote, indicating it was not a current security concern. Based on the resolution of these financial issues, the security clearance was GRANTED.

Why the Applicant Prevailed

The applicant resolved her federal tax liability through an offer and compromise agreement.
She provided proof of payment for state tax debts and settled a mortgage deficiency debt.
The applicant's past Chapter 7 bankruptcy was deemed remote and not indicative of current financial reliability.

Conditions Referenced

Mitigating

AG ¶ 20(a)appliedThe Behavior Was Not Recent and the Applicant Has Shown a Good Faith Effort to Resolve Debts.
AG ¶ 20(b)appliedThe Applicant Has Made Significant Efforts to Pay Off Her Debts and Has Established a Payment Plan.
AG ¶ 20(c)appliedThe Applicant's Financial Problems Were Due to Circumstances Beyond Her Control, Including Bad Advice From a Financial Representative.
AG ¶ 20(d)appliedThe Applicant Has Demonstrated a Track Record of Financial Responsibility Since Resolving Her Debts.

Key Rule Quoted

“I conclude that the security concerns are mitigated under the following mitigating conditions: AG ¶¶ 20(a), 20(b), 20(c), and 20(d).”

Procedural Posture

SOR issuedFeb 2, 2017
Answer filedFeb 21, 2017
Hearing heldJun 22, 2017
Decision dateJul 6, 2017Proposed summary disposition in applicant's favor on June 29, 2017.

Cite For

Mitigation of Financial Issues Under Guideline F
Resolution of Tax Liabilities Through Offer and Compromise Agreements
Consideration of Remote Bankruptcy in Security Clearance Decisions

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: granted

The judge found that the applicant's financial issues, including a mortgage deficiency debt and tax liabilities, were mitigated by evidence of settlement and payment plans. The applicant's Chapter 7 bankruptcy from 2003 was considered remote, leading to a decision in favor of granting the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant paid her federal tax liability through an offer and compromise agreement finalized in June 2017.	For Applicant	Tax Unpaid	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.b	Applicant paid a state tax debt for 2015 and set up a payment plan to resolve her remaining state tax liability for 2013.	For Applicant	Tax Unpaid	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Payment Plan with IRS
1.c	Applicant provided proof of settlement of a mortgage deficiency debt.	For Applicant	Mortgage or Home Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.d	Applicant’s Chapter 7 bankruptcy from 2003 is remote.	For Applicant	Bankruptcy Filing	Admitted	—	(a) behavior happened long ago / infrequent / unlikely to recur	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS

In the matter of: ) ) ) ISCR Case No. 17-00252 ) Applicant for Security Clearance )

For Government: Andrew Henderson, Esq., Department Counsel For Applicant: Pro se

07/06/2017 ______________

DECISION

______________

COACHER, Robert E., Administrative Judge:

On February 2, 2017, the Department of Defense (DOD) issued a Statement of Reasons (SOR) to Applicant detailing security concerns under Guideline F, financial considerations. The action was taken under Executive Order (EO) 10865, Safeguarding Classified Information within Industry (February 20, 1960), as amended; DOD Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the adjudicative guidelines (AG).1

Applicant responded to the SOR on February 21, 2017, and requested a hearing before an administrative judge. The case was assigned to me on April 20, 2017. The hearing was held as scheduled on June 22, 2017. On June 29, 2017, I proposed that this case was appropriate for a summary disposition in Applicant’s favor. Department Counsel did not object.

Applicant presented documentation showing that she paid her federal tax liability through an offer and compromise agreement finalized in June 2017. The negotiations with the IRS were ongoing for several years. The tax liability was not initially paid because of bad advice given to Applicant by a financial representative. She paid a state tax debt for 2015 and set up a payment plan to resolve her remaining state tax liability for 2013. She provided proof of settlement of a mortgage deficiency debt and Applicant’s Chapter 7 bankruptcy from 2003 is remote. Based on the record evidence as a whole, I conclude that the security concerns are mitigated under the following mitigating conditions: AG ¶¶ 20(a), 20(b), 20(c), and 20(d).

The concerns over Applicant’s history of financial problems do not create doubt about her current reliability, trustworthiness, good judgment, and ability to protect classified information. In reaching this conclusion, I weighed the evidence as a whole and considered if the favorable evidence outweighed the unfavorable evidence. I also gave due consideration to the whole-person concept. Accordingly, I conclude that she met her ultimate burden of persuasion to show that it is clearly consistent with the national interest to grant her eligibility for access to classified information. This case is decided for Applicant.

________________________ Robert E. Coacher Administrative Judge

FOOTNOTES

1 I decided this case using the AG implemented by DOD on June 8, 2017. However, I also considered this case under the previous AG implemented on September 1, 2006, and my conclusions are the same using either set of AG.