Summary
A 75-year-old defense contractor's security clearance was granted despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited his failure to timely file federal and state taxes for 2001, 2002, and 2003, which were not submitted until April 2007. Additionally, his federal and state taxes for 2001 and 2002 were not paid until 2007. These issues raised Disqualifying Conditions FC DC 19(a), FC DC 19(c), and FC DC 19(g).
However, several mitigating factors were applied, including FC MC 20(a), FC MC 20(b), and FC MC 20(d). The applicant's failure to file was attributed to his wife's serious health issues, his own cancer diagnosis, and a disruptive move that affected his financial organization.
Crucially, the applicant had maintained a security clearance for over thirty years without any prior incidents. He also demonstrated a good-faith effort to resolve his tax issues before the security clearance action began. Given these mitigating circumstances and his long, unblemished record, the security clearance was granted.
Why the Applicant Prevailed
- The applicant's failure to file taxes was mitigated by his wife's serious health conditions and his own cancer diagnosis.
- He maintained a security clearance for over thirty years without incident.
- The applicant demonstrated a good-faith effort to resolve his tax issues before the initiation of the action.
Conditions Referenced
- FC DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)raisedA History of Not Meeting Financial Obligations
- FC DC 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- FC MC 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- FC MC 20(b)appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- FC MC 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is eligible for a security clearance.”
Procedural Posture
- SOR issuedApr 18, 2007
- Answer filedMay 2, 2007
- Hearing heldAug 1, 2007
- Decision dateAug 30, 2007
Cite For
- Mitigation of Financial Concerns Due to Personal Circumstances
- Whole Person Analysis in Security Clearance Determinations
- Impact of Medical Issues on Financial Responsibility