Summary
A 55-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The Statement of Reasons specifically cited delinquent federal taxes totaling $33,213 for tax years 2005, 2009, and 2010, along with a federal tax lien and multiple delinquent consumer accounts.
Despite having received financial counseling during a prior bankruptcy and making some attempts to address his debts, the applicant failed to demonstrate sufficient progress. Key reasons for the denial included his failure to file federal and state income tax returns for tax years 2013 and 2014.
Furthermore, the applicant did not provide corroborating documentation to demonstrate a good-faith effort to resolve his delinquent obligations, including his tax debts. Ultimately, his financial problems were not deemed to be under control, leading to concerns about his reliability and trustworthiness, and resulting in the denial of his security clearance.
Why the Applicant Was Denied
- The applicant failed to file federal and state income tax returns for tax years 2013 and 2014 as required.
- The applicant did not provide corroborating documentation to show a good-faith effort to resolve his delinquent debts, including taxes.
- The applicant's financial problems were not shown to be under control, raising doubts about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not provide evidence that he acted responsibly under the circumstances.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate a good-faith effort to resolve his delinquent debts.
- AG ¶ 20(g)rejectedArrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant did not demonstrate that he filed his 2013 and 2014 federal and state income tax returns as required.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 4, 2016
- Answer filedDec 9, 2016
- Hearing heldSep 11, 2017Applicant requested a continuance due to deployment.
- Decision dateDec 12, 2017
Cite For
- Failure to Demonstrate Resolution of Financial Obligations Under Guideline F
- Impact of Unresolved Tax Issues on Security Clearance Eligibility
- Insufficient Evidence of Responsible Financial Behavior Leading to Denial of Clearance