Summary
A 59-year-old information assurance manager was denied a security clearance under Guideline F (Financial Considerations). The denial stemmed from the applicant's failure to timely file federal and state income tax returns for five consecutive years. This conduct raised concerns about the applicant's judgment, reliability, and ability to comply with the law, as outlined in the Statement of Reasons.
While the applicant possessed a strong professional background and was involved in community activities, these factors did not sufficiently mitigate the financial concerns. Disqualifying conditions under Guideline F, specifically AG ¶ 19(f), were raised due to the consistent failure to meet tax obligations.
Although mitigating conditions AG ¶ 20(a), AG ¶ 20(b), and AG ¶ 20(c) were considered, the evidence presented was ultimately deemed insufficient to establish a track record of financial responsibility. Consequently, the security concerns were not mitigated, leading to the denial of the security clearance.
Why the Applicant Was Denied
- Applicant failed to timely file federal and state income tax returns for five consecutive years.
- Applicant did not demonstrate good judgment, reliability, or ability to comply with the law.
- The evidence presented was insufficient to establish a track record of financial responsibility.
Conditions Referenced
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Income Tax as Required.
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur.Applicant's failure to file taxes was frequent and continued for five years.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control.Applicant failed to exercise due diligence and did not seek professional assistance.
- AG ¶ 20(c)appliedReceived or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source.Applicant consulted a CPA but did not fully utilize professional assistance.
Key Rule Quoted
“Failure to comply with federal and state tax laws suggests that an applicant has a problem with abiding to well-established Government rules and regulations.”
Procedural Posture
- SOR issuedApr 21, 2017
- Answer filedJun 23, 2017
- Hearing heldApr 18, 2018
- Decision dateJun 28, 2018
Cite For
- Failure to Demonstrate Financial Responsibility Under Guideline F
- Impact of Tax Compliance on Security Clearance Eligibility
- Importance of Seeking Professional Assistance for Financial Issues