Summary
A 58-year-old facilities services specialist was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved financial issues. These included the failure to file federal and state tax returns for 2008 and 2010, an IRS tax lien filed in 2010 for $253,000, and an outstanding collection account for approximately $70,000 related to a second mortgage from 2003. Additionally, a judgment for $1,300 was obtained against the applicant, though this debt was reported as paid in full by August 31, 2015.
The Statement of Reasons specifically cited the unfiled tax returns, the tax lien, and the ongoing collection efforts for the second mortgage. Disqualifying conditions under Guideline F were raised, while mitigating conditions were also considered.
Ultimately, the clearance was denied because the applicant did not provide sufficient documentation demonstrating progress in resolving the outstanding financial problems. The judge concluded that the applicant's financial issues indicated a lack of judgment and responsibility, thereby failing to establish the necessary reliability and trustworthiness for access to classified information.
Why the Applicant Was Denied
- The applicant failed to file federal and state tax returns for tax years 2008 and 2010.
- The applicant did not provide sufficient documentation of progress in resolving financial problems.
- The applicant's financial issues indicated a lack of judgment and responsibility.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant did not demonstrate sufficient evidence of progress in resolving financial issues.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant failed to provide documentation of efforts to resolve the debt in SOR ¶ 1.d.
Key Rule Quoted
“Eligibility for access to classified information is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedAug 12, 2014
- Answer filedFeb 20, 2015
- Hearing heldSep 1, 2015
- Decision dateSep 10, 2015
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Failure to File Tax Returns as a Disqualifying Condition
- Lack of Documentation to Support Claims of Financial Resolution Efforts