Summary
A 36-year-old engineering aid assistant was denied a security clearance due to significant financial concerns under Guideline F. The applicant failed to timely file federal income tax returns for tax years 2009, 2012-2014, and 2016, and owed the IRS approximately $10,418 for tax year 2008, $10,165 for tax year 2010, and $2,328 for tax year 2011. Additionally, state income tax returns for 2008, 2012-2014, and 2016 remained unfiled.
The applicant also had five delinquent accounts in collection, totaling approximately $4,774. While he stated that he had paid some debts and initiated automatic monthly payments for another in April 2018, these efforts were not sufficient to mitigate the overall financial concerns.
The denial was based on the applicant's failure to timely file multiple federal and state tax returns, significant outstanding debts, and a lack of sufficient evidence of financial counseling or a comprehensive plan to resolve his financial issues.
Why the Applicant Was Denied
- The applicant failed to timely file federal and state income tax returns for multiple years.
- He has significant outstanding debts, including approximately $10,418 owed to the IRS for tax year 2008 and other delinquent accounts totaling approximately $4,774.
- The applicant did not provide sufficient evidence of financial counseling or a comprehensive plan to resolve his financial issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- 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)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate and Credible Source
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
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 issuedMar 26, 2018
- Answer filed—Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on written record.
- Decision dateDec 3, 2018
Cite For
- Denial Based on Failure to File Tax Returns Under Guideline F
- Inability to Demonstrate Financial Responsibility as a Security Concern
- Importance of Providing Evidence of Financial Counseling and Resolution Efforts in Security Clearance Cases