Summary
A 47-year-old federal contractor was denied a security clearance due to significant financial issues and personal conduct concerns, specifically under Guidelines E (Personal Conduct) and F (Financial Considerations). The applicant failed to report over $50,000 in tax-related judgments and liens on her security clearance application, which was deemed a deliberate falsification. Additionally, she did not report a $16,000 collection account for a repossessed car she had co-signed.
Her financial situation included over $70,000 in unpaid federal and state taxes, with judgments and liens entered against her in February 2012. This debt comprised over $30,000 in past-due federal income taxes for tax years 2009, 2010, and 2014, and over $22,000 in state back taxes. While one $6,500 state tax lien was satisfied, the applicant had a history of not meeting financial obligations and was found to have prioritized personal expenses over tax responsibilities.
The judge determined that the applicant did not provide sufficient evidence to mitigate the security concerns raised by her financial conduct and dishonesty. Consequently, the security clearance was denied.
Why the applicant was denied
- Applicant failed to report over $50,000 in judgments and liens for unpaid federal income taxes on her security clearance application.
- Applicant's financial problems included over $70,000 in unpaid federal and state taxes, which she did not adequately address or resolve.
- The applicant's actions were deemed not in good faith, as she prioritized personal expenses over her tax obligations.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile the applicant cited her husband's unemployment as a factor, it did not sufficiently mitigate the financial concerns.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant's actions to resolve her tax debts were deemed insufficient and not in good faith.
Key rule quoted
“A security clearance adjudication is not a debt collection process.”
Procedural posture
- SOR issuedJun 10, 2016
- Answer filed—
- Hearing heldJul 27, 2017Rescheduled from May 25, 2017 at applicant's request.
- Decision dateNov 13, 2017
Cite for
- Denial Based on Failure to Disclose Significant Tax Liabilities
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Importance of Honesty in Security Clearance Applications