ISCR Case 16-00081.h1

Case Headnote

ISCR Case No. 16-00081.h1

deniedMar 2, 2018· Hon. Jennifer I. Goldstein· hearing

Summary

A 63-year-old male applicant was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. The Statement of Reasons detailed multiple delinquencies, including federal income tax obligations for 2012 ($7,076) and 2013 ($8,697). Other significant debts included a student loan ($20,711), two cell phone service provider collection accounts ($2,004 and $1,472), a charged-off account ($1,624), and an automobile loan ($1,279). The applicant also had a home foreclosed in 2009 and several smaller medical and television service provider collection accounts.

Disqualifying conditions under Guideline F were raised, specifically concerning a history of not meeting financial obligations, inability to satisfy debts, and an unwillingness to resolve financial issues. While mitigating condition AG ¶ 20(d) was applied, acknowledging some efforts to resolve certain debts, these were deemed insufficient.

The denial was based on the applicant's consistent failure to meet financial obligations, particularly the unresolved federal income tax debts. The applicant did not provide adequate documentation to demonstrate a good-faith effort to resolve his delinquencies, leading to concerns about his reliability and judgment.

Why the Applicant Was Denied

The applicant has a history of not meeting financial obligations, including unresolved federal income tax debts for 2012 and 2013.
The applicant failed to provide sufficient documentation to demonstrate a good-faith effort to resolve his financial delinquencies.
The applicant's financial issues cast doubt on his reliability and judgment.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
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 or Failure to Pay Annual Federal, State, or Local Income Tax as Required

Mitigating

AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant resolved several debts, including those related to cell phone services and medical accounts.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedJun 18, 2016
Answer filedJul 17, 2016Requested a decision based on the written record.
Hearing heldSep 18, 2017Hearing convened as scheduled.
Decision dateMar 2, 2018

Cite For

Failure to Mitigate Financial Considerations Under Guideline F
Impact of Unresolved Tax Obligations on Security Clearance Eligibility
Importance of Demonstrating Good-faith Efforts to Resolve Debts

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

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	was alleged to be delinquent on his Federal income tax obligations for tax year 2013 in the amount of $8,697 $8,697	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—
1.b	was also alleged to be delinquent on his Federal income tax due for tax year 2012 in the amount of $7,076 $7,076	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—
1.c	was alleged to be delinquent on student loan debt in the amount of $20,711 $20,711	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts	—	—
1.d	was alleged to be delinquent on a collection account for a cell phone service provider in the amount of $2,004 $2,004	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	was alleged to be delinquent on a charged-off account in the amount of $1,624 $1,624	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	was alleged to be delinquent on an automobile loan in the amount of $1,279 $1,279	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts	—	—
1.g	was alleged to have had a home foreclosed upon by his mortgage holder in 2009 $335,250	Against Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—
1.h	was alleged to be delinquent on a collection account for a cell phone service provider in the amount of $1,472 $1,472	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.i	was alleged to be delinquent on a medical account in the amount of $295 $295	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.j	was alleged to be delinquent on a collection account for a television service provider in the amount of $275 $275	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.k	was alleged to be delinquent on a medical account in the amount of $249 $249	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts	—	—
1.l	was alleged to be delinquent on a medical account in the amount of $220 $220	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.m	was alleged to be delinquent on a medical account in the amount of $88 $88	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.n	was alleged to be delinquent on a medical account in the amount of $53 $53	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.o	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

was alleged to be delinquent on his Federal income tax obligations for tax year 2013 in the amount of $8,697

$8,697

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(f) failure to file / fraudulent filing of tax returns or unpaid tax

—

1.b

was also alleged to be delinquent on his Federal income tax due for tax year 2012 in the amount of $7,076

$7,076

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(f) failure to file / fraudulent filing of tax returns or unpaid tax

—

1.c

was alleged to be delinquent on student loan debt in the amount of $20,711

$20,711

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

—

1.d

was alleged to be delinquent on a collection account for a cell phone service provider in the amount of $2,004

$2,004

For Applicant

Unspecified Financial

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.e

was alleged to be delinquent on a charged-off account in the amount of $1,624

$1,624

For Applicant

Unspecified Financial

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.f

was alleged to be delinquent on an automobile loan in the amount of $1,279

$1,279

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

—

1.g

was alleged to have had a home foreclosed upon by his mortgage holder in 2009

$335,250

Against Applicant

Mortgage or Home Loan Debt

Admitted

—

1.h

was alleged to be delinquent on a collection account for a cell phone service provider in the amount of $1,472

$1,472

For Applicant

Unspecified Financial

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.i

was alleged to be delinquent on a medical account in the amount of $295

$295

For Applicant

Medical Debt

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.j

was alleged to be delinquent on a collection account for a television service provider in the amount of $275

$275

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.k

was alleged to be delinquent on a medical account in the amount of $249

$249

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

—

1.l

was alleged to be delinquent on a medical account in the amount of $220

$220

For Applicant

Medical Debt

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.m

was alleged to be delinquent on a medical account in the amount of $88

$88

For Applicant

Medical Debt

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.n

was alleged to be delinquent on a medical account in the amount of $53

$53

For Applicant

Medical Debt

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.o

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

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Case Profile

Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES