Summary
A 29-year-old welder/instructor's security clearance application was denied under Guideline F (Financial Considerations) due to significant and unresolved financial issues. The applicant had approximately $16,000 in delinquent debts, including unpaid federal and state taxes.
Specific concerns included the failure to timely file federal and state income tax returns for 2013 and 2014, and an approximate $739 in delinquent state back taxes for 2013. Additionally, a judgment was entered against the applicant in October 2014 for approximately $2,100, which remains owing. Multiple other debts, ranging from approximately $78 to $1,244, were either charged off or placed for collection and remain unpaid. The applicant also experienced wage garnishments in May 2012 for approximately $1,335, in October 2014 for approximately $1,576.94, and in March 2015 for approximately $791.35.
The Administrative Judge, Darlene D. Lokey Anderson, denied the clearance because the applicant failed to provide evidence of resolving any of these financial obligations or demonstrating financial responsibility, raising concerns about reliability and trustworthiness.
Why the Applicant Was Denied
- Applicant has approximately $16,000 in delinquent debts, including unpaid federal and state taxes.
- Applicant failed to timely file his federal and state income tax returns for 2013 and 2014.
- Applicant did not provide evidence of resolving any of his debts or demonstrating financial responsibility.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debt Regardless of the Ability to Do So
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)appliedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns
Key Rule Quoted
“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedJan 23, 2017
- Answer filedFeb 16, 2017Applicant requested a decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateFeb 20, 2018
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Provide Evidence of Debt Resolution as a Factor in Security Clearance Decisions
- Importance of Timely Filing Tax Returns in Security Clearance Evaluations