Summary
A 57-year-old military veteran was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The applicant failed to file federal and state income tax returns from 2000 to 2005, resulting in substantial tax liens and subsequent wage garnishment.
Specific allegations included the failure to file tax returns for the stated years, incurring large federal and state tax liens, and ongoing wage garnishment since 2011 to satisfy the federal tax lien. Additionally, the applicant was indebted to his home state for tax liens filed in June 2005 for approximately $931, July 2008 for approximately $872, and June 2011 for approximately $11,750. While a collection company contacted him regarding these state tax liens, he was unable to pay them.
The denial was based on the applicant's failure to file tax returns for multiple years, the resulting significant tax liabilities, and a lack of proactive steps to resolve these issues until faced with IRS wage garnishment. The judge concluded that this financial conduct raised serious questions about the applicant's judgment and reliability.
Why the Applicant Was Denied
- Applicant failed to file federal and state income tax returns for multiple years, leading to significant tax liabilities.
- The applicant did not take proactive steps to resolve his tax issues until faced with wage garnishment by the IRS.
- The applicant's financial conduct raised serious questions about his judgment and reliability.
Conditions Referenced
- F.19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.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
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good JudgmentThe applicant's conduct was frequent and casts doubt on his reliability.
- F.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThere is no evidence that the applicant's financial problems were beyond his control.
- F.20(c)rejectedThe Individual Has Received or Is Receiving Counseling for the Problem From a Legitimate and Credible SourceThere is no evidence that the applicant received financial counseling.
- F.20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not initiate efforts to resolve his tax problems.
- F.20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those ArrangementsThe applicant has been paying his federal tax debt through wage garnishment.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedMay 11, 2016
- Answer filedAug 15, 2016
- Hearing heldJun 8, 2017
- Decision dateJul 5, 2017
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Security Clearance Decisions