Summary
A 52-year-old cyber-security engineer was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues. The Statement of Reasons detailed several allegations, including $11,356 in back taxes owed to the IRS for tax years 2008, 2009, 2012, and 2013. Additionally, the applicant had three unpaid judgments totaling $4,960, a past-due auto loan of $1,368, and 12 charged-off or collection accounts amounting to $8,358.
The judge identified disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f). While mitigating conditions AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(g) were considered, they were not sufficient to overcome the security concerns.
The denial was based on the applicant's failure to provide adequate evidence to explain or mitigate his financial problems. Specifically, he did not submit documentation demonstrating progress in resolving his debts, including the outstanding IRS taxes. This lack of resolution and supporting evidence led the judge to conclude that the applicant's financial history raised concerns about his reliability and judgment, resulting in the denial of his security clearance.
Why the Applicant Was Denied
- The applicant did not present sufficient evidence to explain or mitigate his financial problems.
- The applicant failed to provide documentation showing progress in resolving his debts, including back taxes owed to the IRS.
- The applicant's financial history raised concerns about his reliability and judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- 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(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial problems were connected to a job layoff, but he did not demonstrate responsible actions since then.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide evidence of good-faith efforts to resolve his debts.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsThe applicant did not provide documentation of any arrangements with the IRS.
Key Rule Quoted
“It is well-established law that no one has a right to a security clearance.”
Procedural Posture
- SOR issuedJun 22, 2017
- Answer filedJul 28, 2017Applicant requested a decision based on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateJan 19, 2018
Cite For
- Insufficient Evidence to Mitigate Financial Issues Under Guideline F
- Importance of Providing Documentation to Support Claims of Financial Responsibility
- The Burden of Proof Lies with the Applicant to Demonstrate Eligibility for Security Clearance.