Summary
A 56-year-old information technology specialist was denied a security clearance under Guideline F (Financial Considerations) due to unresolved delinquent debts, specifically federal income taxes for 2014 and 2015. The Statement of Reasons alleged the applicant failed to file federal and state income tax returns for these years and owed a federal income tax debt of $2,500 for 2014. Additionally, a college-tuition debt of $2,670 had been placed for collection.
Disqualifying conditions 19(a), 19(c), and 19(f) were raised, while mitigating conditions 20(a), 20(b), 20(c), 20(d), 20(e), and 20(g) were considered. However, the denial was ultimately based on the applicant's failure to establish a payment plan with the IRS for her federal income tax debts.
Furthermore, the applicant did not timely file her federal and state income tax returns for 2014 and 2015 until April 2018. These financial issues led to unmitigated concerns regarding her reliability and trustworthiness, resulting in the denial of the security clearance.
Why the Applicant Was Denied
- The applicant did not establish a payment plan with the IRS for her federal income tax debts.
- The applicant failed to timely file her federal and state income tax returns for 2014 and 2015 until April 2018.
- The applicant's financial issues raised unmitigated questions about her reliability and trustworthiness.
Conditions Referenced
- 19(a)raisedInability to Satisfy Debts
- 19(c)raisedHistory of Not Meeting Financial Obligations
- 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
- 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- 20(c)rejectedReceived or Receiving Financial Counseling
- 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
- 20(g)rejectedArrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJan 25, 2018
- Answer filedFeb 19, 2018
- Hearing heldSep 24, 2018
- Decision dateOct 1, 2018
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Failure to Establish a Payment Plan with the IRS as a Disqualifying Factor
- Lack of Timely Tax Filings as a Basis for Security Clearance Denial