Summary
A 54-year-old DOD contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved delinquent state and federal income tax debts. The Statement of Reasons detailed several financial issues, including federal tax liens filed in 2002 for $7,181 and in 2004 for $7,191.
Additional allegations included a $1,574 Social Security debt placed for collection, a $1,350 charged-off debt, and a $151 medical account also sent to collections. Furthermore, the applicant failed to file federal income tax returns for tax years 2014 and 2015. These issues raised disqualifying conditions under AG ¶ 19(a), (b), (c), and (f).
While mitigating conditions under AG ¶ 20(a), (b), (c), (d), and (g) were considered, the applicant ultimately failed to resolve the significant delinquent tax debts and did not establish sufficient financial responsibility. Consequently, the financial concerns were not mitigated, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant failed to resolve significant delinquent state and federal income tax debts.
- The applicant did not establish financial responsibility despite some mitigating circumstances.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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)rejectedThe 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(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(g)rejectedThe 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
“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 issuedMar 13, 2017
- Answer filedMay 7, 2017
- Hearing heldNov 30, 2017
- Decision dateJan 12, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Tax Compliance on Security Clearance Eligibility
- Evaluation of Mitigating Conditions Under Guideline F