Summary
A 41-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to a history of delinquent debts and unpaid taxes. The Statement of Reasons (SOR) alleged approximately $11,500 in federal taxes owed for tax years 2013 through 2015, and a failure to file a 2013 state income tax return. One specific debt of $585, alleged in SOR ¶ 1.c, was paid in February 2017.
Disqualifying conditions cited included AG ¶ 19(a), (b), (c), and (f). Mitigating conditions AG ¶ 20(b), (c), (d), and (g) were applied.
Ultimately, the clearance was denied because the applicant's financial problems, including delinquent debts and unpaid taxes, were recent and ongoing. The applicant failed to provide documentation of a payment plan with the IRS and did not file his 2013 state income tax return, raising concerns about reliability and judgment.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including delinquent debts and unpaid taxes.
- The applicant did not file his 2013 state income tax return and failed to provide documentation of a payment plan with the IRS.
- The applicant's financial issues are recent and ongoing, casting doubt on his reliability and judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Income Tax Returns
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's tax issues occurred after he started his current job, indicating they were within his control.
- AG ¶ 20(c)rejectedReceiving Financial CounselingThe applicant did not provide sufficient evidence of effective financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not demonstrate a good-faith effort to resolve his tax obligations.
- AG ¶ 20(g)rejectedArrangements with Tax AuthorityThe applicant did not document compliance with any installment agreement with the IRS.
Key Rule Quoted
“Voluntary compliance with rules and systems is essential for protecting classified information.”
Procedural Posture
- SOR issuedMay 12, 2017
- Answer filedJun 7, 2017Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateFeb 6, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Documentation in Mitigating Financial Concerns
- Impact of Tax Compliance on Security Clearance Eligibility