Summary
The applicant, a 35-year-old defense contractor and former Marine, faced security concerns under Guideline F due to financial issues, including delinquent debts and failure to file tax returns. The judge found that the applicant had made significant progress in resolving his debts and had taken responsible steps to manage his finances, ultimately granting him security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: payday loan $640 (1.a). medical $380 (1.b). medical $144 (1.c). medical $118 (1.d). medical $62 (1.e). medical $57 (1.f). credit card $1,099 (1.g). child support $2,402 (1.h). child support $1,261 (1.i). furniture charge card $1,583 (1.j). school course not covered by G.I. bill $584 (1.k). medical $467 (1.l). medical $642 (1.m). failed to file federal and state income tax returns for tax years 2013 and 2014 (1.o). failed to pay associated taxes for tax years 2013 and 2014 (1.p).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(g). The decision turned on the following: The applicant resolved most of his delinquent debts prior to the hearing; He filed his overdue tax returns and established a payment plan with the IRS; The applicant demonstrated a good-faith effort to manage his finances and prevent future issues.
Why the applicant prevailed
- The applicant resolved most of his delinquent debts prior to the hearing.
- He filed his overdue tax returns and established a payment plan with the IRS.
- The applicant demonstrated a good-faith effort to manage his finances and prevent future issues.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure 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)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key rule quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural posture
- SOR issuedJan 23, 2017
- Answer filedFeb 17, 2017
- Hearing heldFeb 1, 2018
- Decision dateMar 9, 2018
Cite for
- Mitigation of Financial Issues Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Management