Summary
A 49-year-old applicant, a mother of two special needs children, was denied a security clearance under Guideline F (Financial Considerations) due to significant and unresolved financial issues. The Statement of Reasons detailed numerous allegations, including a $35,712 debt to the Social Security Administration, a car loan deficiency, unpaid educational loans, and various consumer and medical debts. Critically, the applicant failed to file federal and state income tax returns for the tax years 2011 through 2016.
The applicant also had several debts that were either unpaid, lacked sufficient documentation of payment or dispute, or remained unresolved. While some documentation showed payment of four medical accounts and a settlement agreement for one debt, many others persisted. The total amount of delinquent accounts was approximately $69,500.
Despite some evidence of financial counseling and attempts to establish payment plans, the applicant did not demonstrate responsible financial management. The denial was based on the failure to file tax returns for multiple years, numerous unresolved debts totaling approximately $69,500, and ongoing financial issues, including new delinquent accounts appearing on her credit report.
Why the Applicant Was Denied
- The applicant failed to file federal and state income tax returns for tax years 2011 through 2016.
- The applicant has numerous unresolved debts totaling approximately $69,500, including overpaid SSA benefits and unpaid taxes.
- The applicant's financial issues are ongoing, as evidenced by new delinquent accounts appearing on her credit report.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.graisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Returns
- F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.2.cappliedThe Individual Has Received or Is Receiving Financial Counseling
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedMay 5, 2017
- Answer filedJun 16, 2017
- Hearing heldDec 5, 2017Record remained open until December 31, 2017.
- Decision dateMar 6, 2018
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Ongoing Financial Issues Impacting Security Clearance Eligibility
- Mitigating Conditions Related to Financial Counseling and Circumstances Beyond Control