Summary
Darlene D. Anderson, an Administrative Judge, denied the security clearance application of a 46-year-old male applicant, citing concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant failed to file multiple federal and state tax returns over several years and provided false information on his security clearance application regarding his tax obligations, demonstrating a lack of reliability and trustworthiness.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant failed to disclose his failure to file his Federal and state income tax returns discussed above (2.a). Applicant failed to list the lien that was entered against him for failing to pay his taxes (2.b). Applicant failed to timely file his Federal income tax returns for tax years 2005 through 2011, 2013, and 2014 as required. There is no documentary evidence to show that he has filed these tax returns (1.a). Applicant failed to timely filed his state income tax returns for at least tax years 2005 to 2011, and 2013, and 2014 as required. There is no documentary evidence to show that he has filed these tax returns (1.b). Applicant is indebted to Federal tax authorities for unpaid taxes, interest, and penalties for tax years 2005 to 2011 and 2013 in the approximate amount of $40,474. Applicant states that he is currently working with a tax firm to work out a payment plan with the IRS. There is no documentary evidence to show that these taxes have been paid (1.c). Applicant is indebted to Federal tax authorities for a tax lien entered against him in October 2012 in the approximate amount of $9,531. Applicant states that he is currently working with a tax firm to work out a payment plan with the IRS. There is no documentary evidence to show that these taxes have been paid (1.d). Applicant is indebted to Federal tax authorities for a tax lien entered against him in October 2012 in the approximate amount of $21,694. Applicant states that he is currently working with a tax firm to work out a payment plan with the IRS. There is no documentary evidence to show that these taxes have been paid (1.e). Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $2,598. Applicant denies the allegation. The debt still shows on his credit report (1.f). Applicant is indebted to a creditor for a medical bill in the approximate amount of $877. Applicant denies the allegation, and believes the debt is his wife’s. The debt still shows on his credit report (1.g). Applicant is indebted to a cellular telephone company for an account placed for collections in the approximate amount of $487. Applicant denies the allegation. The debt still shows on his credit report (1.h). Applicant is indebted to a creditor for a medical account in the approximate amount of $181. Applicant denies the allegation, and believes the debt is his wife’s. The debt still shows on his credit report (1.i). Applicant is indebted to a creditor for a medical account in the approximate amount of $18. Applicant denies the allegation, and believes the debt is his wife’s. The debt still shows on his credit report (1.j). A judgment was entered against the Applicant in June 2011 in the approximate amount of $813. Applicant denies the allegation, and believes the debt is his wife’s. The debt still shows on his credit report (1.k). A judgment was entered against the Applicant in September 2014 in the approximate amount of $443. Applicant denies the allegation, and believes the debt is his wife’s. The debt still shows on his credit report (1.l). A judgment was entered against the Applicant in September 2009 in the approximate amount of $235. Applicant denies the allegation. The debt still shows on his credit report (1.m).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.b, F.1.c, F.1.g, E.2.a. The decision turned on the following: Applicant failed to file federal and state income tax returns for multiple years, totaling over $70,000 in tax liabilities; Applicant provided false answers on his security clearance application regarding his tax filings and liens, indicating a lack of candor and honesty; No evidence was presented to show that the applicant has taken steps to resolve his financial issues or filed the necessary tax returns.
Why the Applicant Was Denied
- Applicant failed to file federal and state income tax returns for multiple years, totaling over $70,000 in tax liabilities.
- Applicant provided false answers on his security clearance application regarding his tax filings and liens, indicating a lack of candor and honesty.
- No evidence was presented to show that the applicant has taken steps to resolve his financial issues or filed the necessary tax returns.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debt Regardless of the Ability to Do So
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- E.2.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJan 30, 2017
- Answer filedMar 16, 2017
- Hearing held—Decided on the written record without a hearing.
- Decision dateMar 29, 2018
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Deliberate Falsification of Security Clearance Application Under Guideline E
- Lack of Mitigating Circumstances in Financial Distress Cases