Summary
A 63-year-old program director for a DoD contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from the applicant's failure to disclose a tax lien and delinquent federal tax obligations on his January 2015 security clearance application.
The applicant's financial history included a Chapter 7 bankruptcy filed in 2006 and over $103,000 in delinquent federal taxes for tax years 2004, 2005, 2007, and 2008. These issues raised significant concerns about his reliability and judgment.
Despite the application of several mitigating conditions, the judge found that the applicant did not demonstrate a good-faith effort to resolve his tax issues or seek financial counseling. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant failed to disclose an outstanding tax lien and delinquent federal tax obligations on his security clearance application.
- The applicant's history of financial irresponsibility included a Chapter 7 bankruptcy and over $103,000 in unpaid federal taxes.
- The applicant did not demonstrate a good-faith effort to resolve his tax issues or seek financial counseling.
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 Annual Federal, State, or Local Income Tax as Required
- E.2.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's failure to address tax issues was ongoing and indicative of poor judgment.
- F.2.brejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant was aware of his tax issues since 2002 but failed to act responsibly.
- F.2.crejectedThe Individual Has Received or Is Receiving Counseling for the ProblemThe applicant admitted to not receiving any financial counseling.
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a realistic plan for resolving his tax debt.
- E.2.arejectedPrompt, Good-faith Efforts to Correct the OmissionThe applicant's explanations for his omissions were not credible.
- E.2.brejectedThe Offense Is so Minor or so Much Time Has PassedThe applicant's conduct was not minor and raised significant concerns.
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJun 15, 2017
- Answer filedJun 21, 2017Applicant requested a decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateFeb 15, 2018
Cite For
- Failure to Disclose Financial Obligations Under Guideline E
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Importance of Candor in Security Clearance Applications