Summary
A 63-year-old federal employee was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons alleged that the applicant failed to file federal and state tax returns from 2009 to 2014 and owed approximately $16,500 in unpaid federal taxes. Disqualifying conditions F.1.a (inability to satisfy debts), F.1.c (unwillingness to satisfy debts), and F.1.f (failure to file tax returns) were raised.
While mitigating conditions F.2.a (financial problems not recent) and F.2.g (financial problems due to circumstances beyond control) were considered, they were not sufficient to overcome the security concerns. The judge found that the applicant did not provide adequate evidence to demonstrate efforts to resolve her tax obligations, specifically failing to file the outstanding returns or document attempts to pay the $16,500 federal tax debt.
Ultimately, the security clearance was denied because the applicant did not show that her financial problems were unlikely to recur, nor did she provide sufficient evidence of proactive steps to address her long-standing tax issues.
Why the Applicant Was Denied
- Applicant failed to file federal and state tax returns from 2009 to 2014.
- Applicant owed approximately $16,500 in unpaid federal taxes, which remained unresolved.
- Applicant did not provide documentation of efforts to pay her tax debt or file the required returns.
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.arejectedThe 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 JudgmentApplicant's financial issues remain unresolved.
- F.2.grejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsThere is no evidence that Applicant made arrangements with the IRS or state tax authorities.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 5, 2017
- Answer filedMay 16, 2018Applicant elected to have her case decided on the written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateNov 16, 2018
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Lack of Evidence of Financial Stability Impacting Security Clearance Eligibility
- Importance of Demonstrating Efforts to Resolve Financial Obligations in Security Clearance Cases