Summary
The applicant, a 46-year-old engineering technician with a history of financial difficulties, sought a public trust position but was denied due to significant delinquent debts exceeding $60,000 and failure to file tax returns from 2010 to 2016. The judge found that the applicant did not demonstrate sufficient mitigation of financial trustworthiness concerns, leading to a decision against her under Guideline F.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: failed to timely file her federal and state tax returns for tax years 2010 through 2016 (1.a). failed to timely file her federal and state tax returns for tax years 2010 through 2016 (1.b). A Federal tax lien in the amount of $704 for tax year 2012 remains owing (1.c). A Federal tax lien in the amount of $33,980 for tax years 2011 remains owing (1.d). A debt owed to the Attorney General in the amount of $2,138 remains owing (1.e). A debt owed to a creditor in the amount of $114 remains owing (1.f). A debt owed to a creditor in the amount of $121 remains owing (1.g). A debt owed to a creditor in the amount of $1,361 remains owing (1.h). A debt owed to a creditor in the amount of $157 remains owing (1.i). A debt owed to a creditor in the amount of $1,368 remains owing (1.j). A debt owed to a creditor in the amount of $60 remains owing (1.k). A debt owed to a creditor in the amount of $1,678 remains owing (1.l). A debt owed to a creditor in the amount of $331 remains owing (1.m). A debt owed to a creditor in the amount of $2,836 remains owing (1.n). A debt owed to a creditor in the amount of $284 remains owing (1.o). A debt owed to a creditor in the amount of $951 remains owing (1.p). A debt owed to a creditor in the amount of $985 remains owing (1.q). A debt in the amount of $10,725 remains owing (1.r). A debt owed to a creditor in the amount of $1,017 remains owing (1.s). A debt owed to a creditor in the amount of $1,100 remains owing (1.t). A debt owed to a creditor in the amount of $4,370 remains owing (1.u). A debt owed to a creditor in the amount of $366 remains owing (1.v). A debt owed to a creditor in the amount of $6,731 remains owing (1.w). A debt in the amount of $1,766 remains owing (1.x). A debt owed to a creditor in the amount of $5,277 remains owing (1.y). A debt owed to a creditor in the amount of $4,665 remains owing (1.z). A debt owed to a creditor in the amount of $2,122 remains owing (1.aa). A debt owed to a creditor in the amount of $1,206 remains owing (1.bb). A debt owed to a creditor in the amount of $4,223 remains owing (1.cc). A debt owed to a creditor in the amount of $2,924 remains owing (1.dd). A debt in the amount of $3,427 remains owing (1.ee). Applicant was arrested on May 13, 2003 for Theft by Check (1.ff).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.b, F.1.c, F.1.f. The judge applied mitigating conditions F.2.b, F.2.d. The decision turned on the following: Applicant has twenty-nine delinquent debts totaling over $60,000, including back taxes and child support; Applicant failed to timely file federal and state tax returns for multiple years; The applicant did not provide evidence of a good-faith effort to resolve her debts or obtain financial counseling.
Why the Applicant Was Denied
- Applicant has twenty-nine delinquent debts totaling over $60,000, including back taxes and child support.
- Applicant failed to timely file federal and state tax returns for multiple years.
- The applicant did not provide evidence of a good-faith effort to resolve her debts or obtain financial counseling.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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
- F.2.brejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant experienced unemployment and divorce, she did not provide evidence of responsible actions taken to mitigate her debts.
- F.2.drejectedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's claims of future payment arrangements lacked supporting documentation.
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of national security.”
Procedural Posture
- SOR issuedJul 28, 2017
- Answer filedAug 23, 2017Applicant requested a decision on the written record.
- Hearing held—No hearing was conducted.
- Decision dateJun 11, 2018
Cite For
- Financial Overextension as a Disqualifying Condition Under Guideline F
- Failure to Demonstrate a Good-faith Effort to Resolve Debts
- Impact of Financial Distress on Trustworthiness Evaluations