Summary
A 56-year-old naturalized U.S. citizen and military veteran was denied a security clearance under Guideline F, Financial Considerations, due to significant financial issues. The applicant admitted to having six delinquent credit card accounts totaling over $50,000 and a $21,500 collection account, on which only a single $200 payment was made in August 2015. Additionally, the applicant failed to file federal and state tax returns for three consecutive years (2013-2015) and had unresolved state tax debt.
While the applicant claimed to have received financial counseling and made arrangements with the IRS to resolve past-due federal taxes, he did not provide sufficient evidence of responsible action to address the overall financial concerns. He attributed his difficulties to supporting his girlfriend's family.
Ultimately, the clearance was denied because the applicant failed to provide sufficient evidence to mitigate the financial concerns, specifically regarding the over $50,000 in delinquent debts and the unfiled tax returns. The only documented action to resolve the debts was the single $200 payment, which was deemed insufficient to demonstrate a good-faith effort to repay creditors or resolve the outstanding financial obligations.
Why the Applicant Was Denied
- Applicant failed to provide sufficient evidence to mitigate financial concerns.
- He has over $50,000 in delinquent debts and did not file tax returns for three years.
- The only documented action taken to resolve debts was a single $200 payment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived or Is Receiving Financial Counseling
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsInsufficient evidence of responsible action to address debts.
- AG ¶ 20(g)appliedMade Arrangements with the Appropriate Tax Authority
Key Rule Quoted
“A security clearance adjudication is not meant to punish a person for past poor financial decisions.”
Procedural Posture
- SOR issuedDec 28, 2017
- Answer filed—
- Hearing held—Decision made on the written record.
- Decision dateMay 23, 2018
Cite For
- Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
- Impact of Failure to File Tax Returns on Security Clearance Eligibility
- Burden of Proof on Applicant to Demonstrate Responsible Financial Management