Summary
A 52-year-old government contractor employee's security clearance was granted despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed delinquent debts totaling $121,735. These included a federal income tax debt of $16,963 for tax years 2013 and 2015, and a state tax debt of $5,000 for tax year 2015.
Additionally, the SOR listed multiple charged-off bank credit card debts ranging from $2,377 to $11,516, and a bank debt of $9,853 placed for collection. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), (c), and (f) were initially raised.
However, the applicant demonstrated significant progress in resolving these issues. He provided evidence of a debt consolidation plan and made substantial payments. The decision noted that his financial difficulties stemmed largely from circumstances beyond his control, such as unemployment and medical issues. The applicant's good-faith efforts to resolve his financial obligations, as supported by mitigating conditions AG ¶ 20(a), (b), (d), and (g), led to the granting of his security clearance.
Why the Applicant Prevailed
- The applicant provided evidence of a debt consolidation plan and made substantial payments towards his delinquent debts.
- The applicant's financial difficulties were largely due to circumstances beyond his control, including unemployment and medical issues.
- The applicant's actions demonstrated a good-faith effort to resolve his financial obligations.
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(a)appliedThe 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)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances
- AG ¶ 20(d)appliedThe 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 issuedSep 6, 2017
- Answer filedOct 4, 2017
- Hearing heldNov 30, 2017
- Decision dateJan 4, 2018
Cite For
- Mitigating Financial Considerations Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of Circumstances Beyond Control on Financial Obligations