Summary
The applicant, a 55-year-old CEO and Marine Corps veteran, faced security concerns under Guideline F due to financial issues, including a federal tax lien and various debts. The judge found that the applicant mitigated these concerns by demonstrating a good-faith effort to resolve his debts and by providing evidence of improved financial management, ultimately granting the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a alleges a charged-off credit card in the amount of $917. On May 9, 2017, the creditor wrote the debt was paid. His May 23, 2017 credit report shows a zero balance owed to this creditor (1.a). SOR ¶ 1.b alleges a gym-related debt placed for collection for $540. Applicant disputed his responsibility for the debt. Applicant moved away from the location of the gym, and the gym contract indicates the contract may be terminated when the customer moves to a different location (1.b). SOR ¶ 1.c alleges a telecommunications debt placed for collection for $357. Applicant returned the creditor’s telecommunications equipment, and the creditor in SOR ¶ 1.c has a current contract with Applicant (1.c). SOR ¶ 1.d and 1.e allege two medical debts placed for collection for $209 and $55. On May 23, 2017, the creditor wrote the debts were paid, and Applicant’s account is in good standing (1.d). SOR ¶ 1.f alleges, and Applicant admits a federal tax lien was recorded against him on March 24, 2016, in the amount of $155,369 (1.f).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(g). The decision turned on the following: The applicant provided evidence of payments made towards his tax debt and other financial obligations; He demonstrated a good-faith effort to resolve his debts, including plans for an offer-in-compromise with the IRS; The applicant's financial situation was improving, and he had taken steps to ensure compliance with tax obligations.
Why the Applicant Prevailed
- The applicant provided evidence of payments made towards his tax debt and other financial obligations.
- He demonstrated a good-faith effort to resolve his debts, including plans for an offer-in-compromise with the IRS.
- The applicant's financial situation was improving, and he had taken steps to ensure compliance with tax obligations.
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(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- 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 issuedMay 3, 2017
- Answer filedMay 23, 2017
- Hearing heldAug 15, 2017
- Decision dateMar 7, 2018
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Good-faith Efforts to Resolve Tax Debts
- Impact of External Circumstances on Financial Obligations