Summary
A 61-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The Statement of Reasons cited the applicant's failure to timely file state income tax returns for tax years 2011 through 2016, and accruing approximately $6,590 in state income tax debts for tax years 2012 through 2016.
Disqualifying conditions related to financial irresponsibility, a history of not meeting financial obligations, and an inability or unwillingness to satisfy debts were raised. While mitigating conditions such as the financial problems not being recent, the problems being largely beyond the person's control, and the person having received counseling for the problem were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's failure to timely file state income tax returns for multiple years despite having the financial ability to do so. His procrastination and failure to pay debts, including a court judgment to reimburse his ex-wife for attorney's fees, raised significant doubts about his reliability and judgment. The applicant did not provide adequate justification for his financial conduct or demonstrate sufficient efforts to mitigate the issues.
Why the Applicant Was Denied
- Applicant failed to timely file state income tax returns for multiple years despite having the financial ability to do so.
- Applicant's procrastination and failure to pay debts raised concerns about his reliability and judgment.
- The applicant did not provide a good reason for his financial irresponsibility or demonstrate efforts to mitigate the issues.
Conditions Referenced
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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 JudgmentThe applicant's financial issues were recent and ongoing.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate a good-faith effort to resolve his financial obligations.
- 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 ArrangementsThe applicant had not filed his delinquent tax returns or paid his taxes as of the decision date.
Key Rule Quoted
“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.”
Procedural Posture
- SOR issuedOct 20, 2017
- Answer filedDec 13, 2017
- Hearing held—Decision made without a hearing.
- Decision dateMar 29, 2018
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Procrastination on Security Clearance Eligibility
- Burden of Proof for Mitigating Conditions in Financial Cases