ISCR Case 16-02126.h1

Case Headnote

ISCR Case No. 16-02126.h1

grantedFeb 16, 2018· Hon. Martin H. Mogul· hearing

Summary

The applicant, a 36-year-old former U.S. Army service member and current employee of the United States Post Office, sought a security clearance in connection with potential employment in the defense sector. The case involved allegations of financial difficulties and personal conduct, including failure to file tax returns and falsification of information on security questionnaires. The judge found that the applicant had reasonable beliefs regarding his tax obligations and demonstrated good faith in addressing his financial issues, leading to a favorable decision.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The SOR alleges that Applicant deliberately falsified material facts on an Electronic Questionnaires for Investigations Processing (e-QIP) that he executed on September 9, 2015. He was asked whether he had ever been charged with any felony offenses, including any under the Uniform Code of Military Justice (UCMJ) and non-military/civilian felony offenses. Applicant did not disclose that he had been charged in 2004 with a violation of Article 120 of the UCMJ, the offense of Carnal Knowledge. Applicant denied this allegation in his RSOR (2.a). The SOR alleges that Applicant deliberately falsified material facts on an e-QIP that he executed on May 6, 2010. Applicant also did not disclose on this e-QIP that he had been charged in 2004 with a violation Article 120 of the UCMJ, the offense of Carnal Knowledge. Applicant denied this allegation in his RSOR (2.b). The SOR alleges that Applicant failed to file his Federal Income Tax returns for tax years 2009, 2010, and 2011 in a timely manner, and he did not file those returns until 2012 (1.a). The SOR alleges that Applicant failed to file his State A Income Tax returns for tax years 2009, 2010, and 2011 in a timely manner, and he did not file those returns until 2012 (1.b). The SOR alleges that Applicant is indebted to State A for a tax lien entered against him in January 2014 in the approximate amount of $27,347 (1.c). This overdue debt is cited in the SOR for a delinquent account in the amount of $296 (1.d).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(f), AG ¶ 16(a). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(d), AG ¶ 20(e), AG ¶ 20(g). The decision turned on the following: The applicant had a reasonable belief that he could defer filing his Federal taxes while deployed in a combat zone; The applicant's state tax lien was released, and he had no outstanding tax obligations; The applicant provided credible evidence and testimony to mitigate concerns regarding his financial conduct.

Why the Applicant Prevailed

The applicant had a reasonable belief that he could defer filing his Federal taxes while deployed in a combat zone.
The applicant's state tax lien was released, and he had no outstanding tax obligations.
The applicant provided credible evidence and testimony to mitigate concerns regarding his financial conduct.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts

Mitigating

AG ¶ 20(a)appliedBehavior Happened so Long Ago or Occurred Under Circumstances Unlikely to Recur
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Resolve Debts
AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
AG ¶ 20(g)appliedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed

Key Rule Quoted

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

Procedural Posture

SOR issuedNov 22, 2016
Answer filedDec 23, 2016
Hearing heldApr 4, 2017
Decision dateFeb 16, 2018

Cite For

Mitigating Factors for Financial Difficulties Under Guideline F
Reasonable Belief Regarding Tax Obligations for Military Personnel
Good Faith Efforts to Resolve Financial Issues and Disputes

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

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	The SOR alleges that Applicant deliberately falsified material facts on an Electronic Questionnaires for Investigations Processing (e-QIP) that he executed on September 9, 2015. He was asked whether he had ever been charged with any felony offenses, including any under the Uniform Code of Military Justice (UCMJ) and non-military/civilian felony offenses. Applicant did not disclose that he had been charged in 2004 with a violation of Article 120 of the UCMJ, the offense of Carnal Knowledge. Applicant denied this allegation in his RSOR.	For Applicant	Falsification Security FormNOT DELIBERATE	Criminal Conduct	Denied	—	(b) omission/refusal followed advice of counsel; later cooperated fully (c) offense is minor, long ago, infrequent, or unique circumstances	—
2.b	The SOR alleges that Applicant deliberately falsified material facts on an e-QIP that he executed on May 6, 2010. Applicant also did not disclose on this e-QIP that he had been charged in 2004 with a violation Article 120 of the UCMJ, the offense of Carnal Knowledge. Applicant denied this allegation in his RSOR.	For Applicant	Falsification Security FormNOT DELIBERATE	Criminal Conduct	Denied	—	(b) omission/refusal followed advice of counsel; later cooperated fully (c) offense is minor, long ago, infrequent, or unique circumstances	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

The SOR alleges that Applicant deliberately falsified material facts on an Electronic Questionnaires for Investigations Processing (e-QIP) that he executed on September 9, 2015. He was asked whether he had ever been charged with any felony offenses, including any under the Uniform Code of Military Justice (UCMJ) and non-military/civilian felony offenses. Applicant did not disclose that he had been charged in 2004 with a violation of Article 120 of the UCMJ, the offense of Carnal Knowledge. Applicant denied this allegation in his RSOR.

For Applicant

Falsification Security FormNOT DELIBERATE

Criminal Conduct

Denied

—

(b) omission/refusal followed advice of counsel; later cooperated fully

(c) offense is minor, long ago, infrequent, or unique circumstances

—

2.b

The SOR alleges that Applicant deliberately falsified material facts on an e-QIP that he executed on May 6, 2010. Applicant also did not disclose on this e-QIP that he had been charged in 2004 with a violation Article 120 of the UCMJ, the offense of Carnal Knowledge. Applicant denied this allegation in his RSOR.

For Applicant

Falsification Security FormNOT DELIBERATE

Criminal Conduct

Denied

—

(b) omission/refusal followed advice of counsel; later cooperated fully

(c) offense is minor, long ago, infrequent, or unique circumstances

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The SOR alleges that Applicant failed to file his Federal Income Tax returns for tax years 2009, 2010, and 2011 in a timely manner, and he did not file those returns until 2012.	For Applicant	Tax Filing Failure	Denied	(f) failure to file / fraudulent filing of tax returns or unpaid tax	(a) behavior happened long ago / infrequent / unlikely to recur (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt (g) arrangements made with the tax authority; in compliance	—
1.b	The SOR alleges that Applicant failed to file his State A Income Tax returns for tax years 2009, 2010, and 2011 in a timely manner, and he did not file those returns until 2012.	For Applicant	Tax Filing Failure	Denied	(f) failure to file / fraudulent filing of tax returns or unpaid tax	(a) behavior happened long ago / infrequent / unlikely to recur (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt (g) arrangements made with the tax authority; in compliance	—
1.c	The SOR alleges that Applicant is indebted to State A for a tax lien entered against him in January 2014 in the approximate amount of $27,347. $27,347	For Applicant	Tax Unpaid	Denied	(a) inability to satisfy debts	—	—
1.d	This overdue debt is cited in the SOR for a delinquent account in the amount of $296. $296	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The SOR alleges that Applicant failed to file his Federal Income Tax returns for tax years 2009, 2010, and 2011 in a timely manner, and he did not file those returns until 2012.

For Applicant

Tax Filing Failure

Denied

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

(a) behavior happened long ago / infrequent / unlikely to recur

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

(e) reasonable, documented basis to dispute the debt

(g) arrangements made with the tax authority; in compliance

—

1.b

The SOR alleges that Applicant failed to file his State A Income Tax returns for tax years 2009, 2010, and 2011 in a timely manner, and he did not file those returns until 2012.

For Applicant

Tax Filing Failure

Denied

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

(a) behavior happened long ago / infrequent / unlikely to recur

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

(e) reasonable, documented basis to dispute the debt

(g) arrangements made with the tax authority; in compliance

—

1.c

The SOR alleges that Applicant is indebted to State A for a tax lien entered against him in January 2014 in the approximate amount of $27,347.

$27,347

For Applicant

Tax Unpaid

Denied

(a) inability to satisfy debts

—

1.d

This overdue debt is cited in the SOR for a delinquent account in the amount of $296.

$296

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

—

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Case Profile

Summary

Why the Applicant Prevailed

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