Summary
This case involves a 56-year-old female applicant with prior military service and a security clearance held since 2001, whose clearance was denied under Guideline F (Financial Considerations). The Statement of Reasons detailed significant financial issues, including five accounts in collection or charged-off status totaling $17,154, an additional charged-off account of an unspecified amount, and a $2,641 state tax lien. A primary concern was a delinquent federal tax debt of $45,000 for tax years 2008 through 2012.
Disqualifying conditions related to financial irresponsibility were raised, while several mitigating conditions were considered, including that the behavior was not recent, the financial problems were largely due to circumstances beyond the applicant's control, and the applicant had initiated good-faith efforts to resolve the debts.
Ultimately, the security clearance was denied. The judge found that the applicant failed to timely address her $45,000 federal tax debt and did not provide sufficient evidence of efforts to resolve it or substantiate claims of errors in the balance. This lack of responsible financial management raised concerns about her reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has unresolved federal tax debt totaling $45,000, which she failed to address in a timely manner.
- The applicant did not provide sufficient evidence of efforts to resolve her federal tax debt or to substantiate her claims of errors in the balance owed.
- The applicant's financial irresponsibility raised concerns about her reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure 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
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“An applicant does not have to be debt-free in order to qualify for a security clearance. Rather, all that is required is that an applicant act responsibly given his circumstances and develop a reasonable plan for repayment, accompanied by 'concomitant conduct' that is, actions which evidence a serious intent to effectuate the plan.”
Procedural Posture
- SOR issuedOct 15, 2016
- Answer filedNov 7, 2016
- Hearing held—Decision made on the record without a hearing.
- Decision dateNov 28, 2017
Cite For
- Failure to Resolve Significant Federal Tax Debt Under Guideline F
- Insufficient Evidence of Financial Responsibility and Management
- Impact of Financial Issues on Security Clearance Eligibility Under Guideline F