Summary
A 55-year-old director of security for a defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged the applicant owed the federal government $36,543 for tax year 2009, $45,307 for tax year 2010, and $28,173 for tax year 2011. Additionally, the applicant was indebted to a state tax authority for $19,048. These allegations raised disqualifying conditions under Adjudicative Guideline (AG) ¶ 19(a), ¶ 19(c), and ¶ 19(f).
However, the applicant demonstrated that these tax issues stemmed from circumstances beyond his control, specifically the incapacitation of his accountant. He took significant, good-faith, and timely actions to resolve all outstanding tax debts prior to the issuance of the SOR.
The decision to grant the clearance was based on the application of mitigating conditions, including AG ¶ 20(a), ¶ 20(b), ¶ 20(c), ¶ 20(d), and ¶ 20(g). The applicant's financial issues were largely attributed to external circumstances, and he successfully resolved the debts. Furthermore, he demonstrated a consistent history of responsible behavior and integrity in his professional life.
Why the Applicant Prevailed
- The applicant's tax debts were resolved through good-faith efforts and timely actions taken before the SOR was issued.
- The applicant's financial issues were largely due to circumstances beyond his control, including the incapacitation of their accountant.
- The applicant demonstrated a long history of responsible behavior and integrity in his professional life.
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 and Does Not Cast Doubt on the Individual's Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- 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 adjudicative guidelines.”
Procedural Posture
- SOR issuedMar 8, 2017
- Answer filedMar 31, 2017
- Hearing heldJun 11, 2018Applicant was visually impaired but able to participate meaningfully.
- Decision dateAug 31, 2018
Cite For
- Mitigating Conditions Under Guideline F Due to Circumstances Beyond the Applicant's Control
- Good-faith Efforts to Resolve Financial Obligations
- Whole-person Analysis in Security Clearance Determinations