Summary
The applicant, a 52-year-old maintenance worker, faced security clearance denial under Guideline F due to significant unresolved state tax debts and insufficient evidence to mitigate financial concerns. Despite some debts being attributed to his ex-wife, the applicant failed to demonstrate responsible action regarding tax liens, leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a ($8,822 past due) is the primary mortgage for the home (with a total balance due of $358,714) (1.a). SOR ¶ 1.b is the second mortgage on the home. It was charged off in the amount of $92,154 (1.b). SOR ¶ 1.c ($836) is a medical debt that Applicant admits (1.c). SOR ¶ 1.d ($455) is a medical debt that Applicant admits (1.d). SOR ¶ 1.e ($126) is a medical debt that Applicant admits (1.e). SOR ¶ 1.f ($29,479) is a state tax lien issued against Applicant and his first wife by the state where they lived when they were married (1.f). SOR ¶ 1.g ($8,295) is a state tax lien issued against Applicant and his first wife by the state where they lived when they were married (1.g). SOR ¶ 1.h ($10,180) is a judgment filed against Applicant in 2011 by a creditor bank (1.h). SOR ¶ 1.i ($648) is a medical debt that Applicant admits and has been paid (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(g). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has significant unresolved state tax debts; The applicant did not provide sufficient evidence to mitigate the security concerns under Guideline F.
Why the Applicant Was Denied
- The applicant has significant unresolved state tax debts.
- The applicant did not provide sufficient evidence to mitigate the security concerns under Guideline F.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not establish that the tax debts were solely his ex-wife's responsibility.
Key Rule Quoted
“"the clearly consistent standard indicates that security determinations should err, if they must, on the side of denials."”
Procedural Posture
- SOR issuedMay 26, 2017
- Answer filedJun 23, 2017
- Hearing heldApr 25, 2018
- Decision dateAug 8, 2018
Cite For
- Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
- Unresolved State Tax Debts as a Disqualifying Factor
- The Importance of Demonstrating Responsible Action Regarding Financial Obligations