Summary
A 40-year-old defense contractor employee was denied a security clearance due to significant financial concerns under Guideline F. The applicant admitted to an outstanding tax lien with the IRS for approximately $19,169. Additionally, he acknowledged owing about $9,275 to Creditor B following an automobile repossession, and approximately $2,428 to Creditor C for a timeshare, both co-owned with his former spouse.
While the applicant stated he had paid past-due debts to Creditor D (about $162), Creditor E (about $1,198), and Creditor F (about $119), these resolutions were not sufficient to mitigate the overall financial picture.
The denial was based on the applicant's ongoing financial problems, specifically two significant outstanding debts totaling approximately $11,703. The decision concluded that the applicant failed to demonstrate that future financial problems were unlikely or that he had made a good-faith effort to resolve his remaining debts.
Why the Applicant Was Denied
- The applicant has ongoing financial problems with two significant outstanding debts totaling about $11,703.
- The applicant did not demonstrate that future financial problems are unlikely or that he has made a good-faith effort to resolve his debts.
Conditions Referenced
- F.19(a)raisedInability to Satisfy Debts
- F.19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.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
- F.20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- F.20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- F.20(c)rejectedReceived Financial Counseling From a Legitimate Source
- F.20(d)rejectedInitiated and Adhered to a Good-faith Effort to Repay Overdue Creditors
- F.20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
- F.20(f)rejectedAffluence Resulted From a Legal Source of Income
- F.20(g)rejectedMade Arrangements with the Appropriate Tax Authority
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of national security.”
Procedural Posture
- SOR issuedMay 30, 2017
- Answer filedJul 6, 2017
- Hearing heldSep 27, 2017
- Decision dateAug 16, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Distress on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Financial Cases