Summary
A 47-year-old combat systems analyst and retired Navy lieutenant was denied a security clearance due to financial considerations under Guideline F. The Statement of Reasons detailed multiple delinquent debts, including a $50 medical debt, a $3,902 charged-off military credit card, and another credit card charged off for $53. Additional debts included student loans placed for collection totaling $2,450 and $547, along with two charged-off accounts for $669 and $59, and a credit card charged off for $1,510.
Furthermore, the applicant failed to timely file federal income tax returns for 2012 through 2016 and had outstanding federal income tax debts for 2009, 2010, and 2011. Disqualifying conditions related to these financial issues were raised, while several mitigating conditions were considered.
Ultimately, the clearance was denied because the applicant had numerous and recent delinquent debts, including federal tax debts and student loans. She failed to provide sufficient documentation to support claims of financial responsibility and rehabilitation, and her financial issues were not resolved in a timely manner, raising concerns about her judgment and reliability.
Why the Applicant Was Denied
- The applicant had numerous and recent delinquent debts, including federal tax debts and student loans.
- She failed to provide sufficient documentation to support her claims of financial responsibility and rehabilitation efforts.
- The applicant's financial issues were not resolved in a timely manner, raising concerns about her judgment and reliability.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual's Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedAug 3, 2017
- Answer filedAug 28, 2017
- Hearing heldDec 4, 2017
- Decision dateDec 15, 2017
Cite For
- Evaluation of Financial Irresponsibility Under Guideline F
- Impact of Unresolved Tax Debts on Security Clearance Eligibility
- Consideration of Mitigating Conditions in Financial Cases