Summary
The applicant, a 41-year-old federal contractor, faced security clearance denial under Guideline E (personal conduct) and Guideline F (financial considerations) due to his failure to timely file federal income tax returns from 2007 to 2012 and deliberate falsification of his 2016 security clearance application. The judge found that the applicant's financial issues were ongoing and indicative of poor judgment, leading to a lack of trustworthiness.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant deliberately falsified his 2016 security clearance application (SCA) to cover his failure to timely file his income tax returns and resulting federal and state tax debts (2.a). Applicant failed to disclose that he had failed to timely file his federal and state income tax returns for tax years 2007 through 2012; the IRS placed a lien on his assets in December 2015; he had an extensive federal tax debt; and his assets had been attached by the IRS (2.b). failed to timely file federal income tax returns for tax years 2007 through 2012 (1.a). $8,868 charged-off car loan (1.b). $1,131 delinquent phone services account (1.c). $110 medical debt (1.d). $110 medical debt (1.e). $110 medical debt (1.f). $110 medical debt (1.g). $110 medical debt (1.h). $30 delinquent medical debt (1.i). $1,600 unpaid tax lien (1.j). $2,086 unpaid tax lien (1.k). $19,182 tax lien placed by IRS (1.l). $8,063 unpaid tax lien (1.m). $4,559 unpaid tax lien (1.n). $1,477 unpaid tax lien (1.o). $1,654 unpaid tax lien (1.p).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.c, F.1.f, E.2.a. The decision turned on the following: Applicant failed to timely file federal income tax returns from 2007 to 2012; Applicant deliberately falsified his 2016 security clearance application regarding his tax filings and debts; Financial problems were ongoing and indicative of poor judgment.
Why the Applicant Was Denied
- Applicant failed to timely file federal income tax returns from 2007 to 2012.
- Applicant deliberately falsified his 2016 security clearance application regarding his tax filings and debts.
- Financial problems were ongoing and indicative of poor judgment.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.fraisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Income Tax as Required
- E.2.aappliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
Key Rule Quoted
“Once a concern arises regarding an Applicant’s security clearance eligibility, there is a strong presumption against the grant or maintenance of a security clearance.”
Procedural Posture
- SOR issuedApr 13, 2017
- Answer filedJul 27, 2017
- Hearing heldMar 20, 2018
- Decision dateApr 30, 2018
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Deliberate Falsification of Security Clearance Application Under Guideline E
- Presumption Against Granting Security Clearance When Concerns Arise