Summary
A 57-year-old defense contractor and military veteran was denied a security clearance under Guideline F (Financial Considerations) due to his failure to file federal income tax returns for tax years 2012 through 2014. The Statement of Reasons specifically alleged that he did not timely file these returns.
The applicant attributed the delinquency to procrastination and claimed he had subsequently filed the returns. However, he provided no corroborating evidence to support this assertion, nor did he present any documentation of arrangements made with tax authorities.
Despite the application of several mitigating conditions, the Adjudicator found the applicant's uncorroborated claims insufficient to demonstrate compliance with his tax obligations. The lack of evidence regarding past filings or future plans raised significant doubts about his willingness and ability to comply with tax requirements, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant failed to file federal income tax returns for tax years 2012 through 2014 due to procrastination.
- Applicant's assertion that he filed his delinquent tax returns was uncorroborated and insufficient to demonstrate compliance with tax obligations.
- There was no evidence of arrangements made with tax authorities or documentation of tax filings, raising doubts about future compliance.
Conditions Referenced
- 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.
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment.Applicant's failure to file tax returns for three consecutive years reflects a continuing course of conduct.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control.Applicant's procrastination and lack of urgency to file tax returns do not constitute circumstances beyond his control.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem From a Legitimate and Credible Source.There was no evidence of counseling or steps taken to resolve the tax issues.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements.Applicant did not demonstrate compliance with tax obligations or arrangements with tax authorities.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 15, 2016
- Answer filedNov 9, 2016Requested decision on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateOct 23, 2017
Cite For
- Failure to File Federal Income Tax Returns as a Disqualifying Condition Under Guideline F
- Insufficient Evidence of Compliance with Tax Obligations Affecting Security Clearance Eligibility
- The Importance of Corroborating Evidence in Tax-related Security Clearance Cases