Summary
A 41-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to his failure to timely file federal and state income tax returns for tax years 2007 and 2009 through 2015. This issue was identified as a security concern in the Statement of Reasons.
Although the applicant filed all overdue returns in June 2017, after receiving the Statement of Reasons in May 2017, the judge determined that this action did not sufficiently mitigate the financial concerns. The decision highlighted that the applicant did not prioritize filing his tax returns until prompted by the Statement of Reasons, which indicated a lack of responsibility.
Ultimately, the judge concluded that the applicant's reasons for failing to file were not largely beyond his control, and he did not act responsibly under the circumstances. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant failed to timely file federal and state income tax returns for tax years 2007 and 2009 through 2015, as required.
- The applicant did not prioritize filing his tax returns until he received the Statement of Reasons in May 2017, indicating a lack of responsibility.
- The applicant's reasons for failing to file were not largely beyond his control, and he did not act responsibly under the circumstances.
Conditions Referenced
- 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(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.
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control and the Individual Acted Responsibly Under the Circumstances.
Key Rule Quoted
“It is well established that failure to comply with tax laws suggests that an applicant has difficulty with abiding by government rules and regulations.”
Procedural Posture
- SOR issuedMay 9, 2017
- Answer filedJun 7, 2017
- Hearing heldApr 18, 2018
- Decision dateAug 31, 2018
Cite For
- Failure to Timely File Tax Returns Under Guideline F
- Importance of Prioritizing Tax Obligations for Security Clearance
- Impact of Corrective Actions Taken Only After Receiving a Statement of Reasons on Security Clearance Decisions.