Summary
The applicant, a 37-year-old male with a history of working for defense contractors, faced security clearance denial under Guideline F due to over $103,000 in unresolved delinquent debts and failure to file federal tax returns for ten of the last eleven years. The judge found that the applicant did not demonstrate control over his financial difficulties, leading to significant security concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted owing a past-due debt to a creditor in the amount of $4,535 for telephone services. No information was provided that this debt has been paid or reduced. This debt is not resolved (1.a). Applicant admitted owing a past-due debt to a creditor in the amount of $1,901. In his Answer Applicant stated that he, “Need[ed] to return equipment.” No information was provided that this debt has been paid or reduced. This debt is not resolved (1.b). Applicant admitted that he owed the Internal Revenue Service (IRS) at least $47,870 in unpaid back taxes. A tax lien was filed against Applicant in 2013 concerning this debt. No further information was provided. This debt is not resolved (1.c). Applicant admitted owing a past-due debt to a creditor in the amount of $1,254 for telephone services. No information was provided that this debt has been paid or reduced. This debt is not resolved (1.d). Applicant admitted owing a past-due debt to a creditor in the amount of $829. In his Answer Applicant stated that he, “Need[ed] to return equipment.” No information was provided that this debt has been paid or reduced. This debt is not resolved (1.e). Applicant admitted owing a past-due debt to a creditor in the amount of $122 for insurance services. No information was provided that this debt has been paid or reduced. This debt is not resolved (1.f). Applicant admitted owing a past-due debt to a creditor in the amount of $79 for insurance services. No information was provided that this debt has been paid or reduced. This debt is not resolved (1.g). Applicant admitted that he had not filed his Federal tax returns for tax years 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2013, 2014, and 2015. He did file a return for tax year 2012. In an interview with a Government investigator on November 9, 2015, Applicant stated that during the tax years 2006, 2008, 2009, and 2011 he was working overseas and did not have his tax paperwork forwarded to him. The report also says, “Since returning to the states permanently in 12/12, he has not filed due to being scared since he hasn’t filed for so long.” Applicant further indicated that he would contact the Internal Revenue Service (IRS) to find out how to become current on his taxes. No further information was provided to show that Applicant has filed any of his tax returns. This allegation is not resolved (1.h). Applicant admitted not filing his required state tax returns for all the tax years between 2005 and 2015. No further information was submitted to show that Applicant has filed the required tax returns, or was not required to file them. This allegation is not resolved (1.i). Applicant admitted owing $47,000 in unpaid state taxes. He stated in his interview that this figure was an estimate. No further information was provided. This debt is not resolved (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The decision turned on the following: Applicant incurred over $103,000 in delinquent debts, including state and federal tax debts, which remain unresolved; Applicant failed to file federal tax returns for ten out of the last eleven years, indicating a lack of financial responsibility; No evidence was presented to show that the applicant's financial issues were under control or that he had taken steps to mitigate them.
Why the Applicant Was Denied
- Applicant incurred over $103,000 in delinquent debts, including state and federal tax debts, which remain unresolved.
- Applicant failed to file federal tax returns for ten out of the last eleven years, indicating a lack of financial responsibility.
- No evidence was presented to show that the applicant's financial issues were under control or that he had taken steps to mitigate them.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of Ability to Do So
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedOct 12, 2016
- Answer filedNov 14, 2016
- Hearing held—Case decided on the written record without a hearing.
- Decision dateNov 21, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to File Tax Returns as a Disqualifying Condition
- Lack of Evidence for Mitigating Financial Concerns in Security Clearance Cases