Summary
A 52-year-old computer system administrator was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial issues. The applicant failed to timely file federal income tax returns from 2005 to 2010, leading to significant tax liens. Specifically, allegations included failure to timely file federal returns from 2005-2013, a state tax lien of $45,289, another state tax lien of $6,642, and a past-due balance of $18,454 that was over 120 days old. The applicant claimed to have paid one specific debt (SOR debt 1.f).
Disqualifying conditions related to financial irresponsibility were raised, while mitigating conditions, such as the financial problems being largely beyond the applicant's control or the applicant having initiated a good-faith effort to resolve the debts, were considered.
Ultimately, the clearance was denied because the applicant failed to establish a consistent track record of payments on his tax installment agreements and provided no evidence of credit or financial counseling or a budget to demonstrate financial responsibility.
Why the Applicant Was Denied
- Applicant failed to timely file federal income tax returns for at least six years, resulting in federal and state tax liens.
- Applicant did not establish a consistent track record of payments on his tax installment agreements.
- Applicant provided no evidence of credit or financial counseling or a budget to demonstrate financial responsibility.
Conditions Referenced
- ¶19(a)raisedInability to Satisfy Debts
- ¶19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- ¶19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
- ¶20(a)rejectedBehavior Happened Long Ago or InfrequentlyApplicant's failures to file were multiple and not recent, but circumstances were not likely to recur.
- ¶20(b)rejectedConditions Largely Beyond the Person's ControlApplicant is responsible for ensuring timely filing of tax returns.
- ¶20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant's efforts to work with the IRS were made in good faith, but he did not document regular payments.
Key Rule Quoted
“A person who fails repeatedly to fulfill his or her legal obligations does not demonstrate the high degree of good judgment and reliability required of persons granted access to classified information.”
Procedural Posture
- SOR issuedNov 29, 2016
- Answer filed—Applicant requested a hearing.
- Hearing heldDec 13, 2017
- Decision dateSep 25, 2018
Cite For
- Failure to Timely File Tax Returns as a Disqualifying Condition Under Guideline F
- Lack of Established Track Record of Payments on Tax Debts
- Good-faith Efforts to Resolve Financial Issues May Not Mitigate Security Concerns