Summary
A 34-year-old program analyst was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties. The Statement of Reasons detailed multiple allegations, including the failure to timely file federal and state income tax returns for tax years 2012 through 2015, and a delinquent federal tax debt of approximately $8,000 for tax year 2011.
Additionally, the applicant had seven consumer debts totaling about $20,204, along with several specific delinquent accounts. These included credit card accounts referred for collection totaling $1,066, $835, and $250, as well as two debts for overpayment by AGA referred for collection totaling $770 and $506. Other outstanding debts included a cellphone bill for $1,248, a credit card bill for $748, medical bills for $191, $167, and $481 (the latter reduced to judgment), and a public storage bill for $152.
Despite some efforts to manage his debts, the judge found that the applicant did not demonstrate sufficient responsibility or a viable plan to resolve his financial issues. The denial was based on the numerous and recent delinquent debts, the lack of a reasonable plan to resolve financial obligations (especially regarding unfiled tax returns), and the conclusion that the financial issues reflected a lack of good judgment and reliability.
Why the Applicant Was Denied
- The applicant has numerous and recent delinquent debts that were not incurred under circumstances making them unlikely to recur.
- The applicant failed to provide evidence of a reasonable plan to resolve his financial obligations, particularly regarding unfiled tax returns.
- The applicant's financial issues reflect a lack of good judgment and reliability required for access to classified information.
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)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(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve 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 Arrangements
Key Rule Quoted
“An applicant who claims that a debt is being resolved is expected to present documentary evidence supporting that claim.”
Procedural Posture
- SOR issuedOct 30, 2017
- Answer filedJan 13, 2018
- Hearing heldMay 24, 2018
- Decision dateAug 13, 2018
Cite For
- Evaluation of Financial Irresponsibility Under Guideline F
- Requirements for Demonstrating Good-faith Efforts to Resolve Debts
- Impact of Unfiled Tax Returns on Security Clearance Eligibility