Summary
A 67-year-old senior consultant for a defense contractor was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from a pattern of unresolved financial issues, specifically the failure to timely file federal tax returns for tax years 2011 through 2014.
Additionally, the applicant incurred multiple federal tax liens. These included a lien in May 2010 for $26,443, two separate liens in January 2015 for $42,315 and $34,547, and another in April 2016 for $111,000. The total amount of these unresolved federal tax liens was $179,788.
The judge determined that these financial difficulties raised significant concerns regarding the applicant's reliability and trustworthiness, leading to the ultimate denial of the security clearance. Disqualifying conditions 19(a), 19(b), 19(c), and 19(f) were raised, while mitigating conditions 20(b), 20(d), and 20(g) were applied.
Why the applicant was denied
- The applicant failed to timely file federal tax returns for tax years 2011-2014.
- The applicant incurred unresolved federal tax liens totaling $179,788.
- The applicant's financial difficulties raised concerns about his reliability and trustworthiness.
Conditions referenced
- 19(a)raisedInability to Satisfy Debts
- 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 19(c)raisedA History of Not Meeting Financial Obligations
- 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
- 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's cited extenuating circumstances provided little basis for his failure to timely file his federal tax returns.
- 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate sufficient evidence of addressing his federal tax returns and tax liens.
- 20(g)notedThe 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 access to classified information is denied.”
Procedural posture
- SOR issuedMar 10, 2017
- Answer filedApr 10, 2017
- Hearing heldAug 1, 2017Applicant requested to keep the record open for additional submissions.
- Decision dateJan 19, 2018
Cite for
- Failure to Timely File Federal Tax Returns as a Disqualifying Condition Under Guideline F
- Significance of Unresolved Federal Tax Liens in Security Clearance Determinations
- Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility