Summary
A 51-year-old employee of a Department of Defense contractor was denied a security clearance under Guideline F (Financial Considerations). The applicant admitted to failing to file federal and state income taxes for 2012 and 2013. Additionally, he had 21 delinquent accounts with an approximate total balance of $25,290, of which ten were delinquent medical accounts totaling approximately $4,481.
The Statement of Reasons cited these failures to file taxes and the 21 delinquent accounts as disqualifying conditions under Guideline F. While mitigating condition F.2.b (the condition was not recent, was an isolated incident, or the applicant has taken steps to resolve the problem) was considered, it was not found sufficient to overcome the concerns.
The denial was based on the applicant's failure to file taxes for 2012 and 2013, the existence of 21 delinquent accounts totaling approximately $25,290, and the lack of proof that any of these debts had been resolved or paid. The judge concluded that the applicant did not demonstrate responsible action to improve his financial situation, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant failed to file federal and state income taxes for 2012 and 2013.
- He had 21 delinquent accounts totaling approximately $25,290.
- The applicant did not provide proof of resolving or paying any of the delinquent debts.
- He did not demonstrate responsible action to improve his financial situation.
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
- F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's health issues and marital separation contributed to his financial problems.
Key Rule Quoted
“The security concern relating to the guideline for Financial Considerations is set out in AG & 18: Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedSep 29, 2017
- Answer filedNov 1, 2017Requested a decision on the record.
- FORM issuedNov 30, 2017
- FORM receivedDec 5, 2017
- Decision dateApr 11, 2018
Cite For
- Failure to File Taxes as a Disqualifying Condition Under Guideline F
- Inability to Satisfy Debts as a Disqualifying Condition Under Guideline F
- Consideration of Circumstances Beyond the Applicant's Control in Financial Cases