Summary
The applicant, a 40-year-old truck driver and DOD contractor, faced security clearance denial under Guideline F due to failure to timely file federal income tax returns for 2015 and 2016, despite having resolved other financial issues. The judge found that the applicant's failure to comply with tax obligations raised significant concerns about her reliability and judgment.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a alleges four student loans placed for collection for $11,136, $7,188, $5,759, and $5,633 (1.a). SOR ¶ 1.e alleges Applicant failed to file her federal income tax returns as required for tax years 2015 and 2016 (1.e). SOR ¶ 1.f alleges Applicant owes the IRS for past-due taxes in the amount of $8,324 (1.f).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.c, F.1.f. The judge applied mitigating conditions F.2.b, F.2.d. The decision turned on the following: The applicant failed to timely file her federal income tax returns for tax years 2015 and 2016; The applicant's failure to comply with tax obligations indicated poor judgment and reliability.
Why the Applicant Was Denied
- The applicant failed to timely file her federal income tax returns for tax years 2015 and 2016.
- The applicant's failure to comply with tax obligations indicated poor judgment and reliability.
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
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not act responsibly under the circumstances when she failed to timely file her federal income tax returns.
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsWhile the applicant made payments to resolve debts, her failure to file tax returns was a significant concern.
Key Rule Quoted
“Failure to file tax returns suggests that an applicant has a problem with complying with well-established governmental rules and systems.”
Procedural Posture
- SOR issuedAug 18, 2017
- Answer filedNov 30, 2017
- Hearing heldMar 1, 2018Applicant waived her right to 15 days of notice.
- Decision dateJul 6, 2018
Cite For
- Failure to Timely File Federal Income Tax Returns as a Disqualifying Condition Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- The Importance of Compliance with Tax Obligations in Assessing Reliability and Judgment for Security Clearance Purposes.