Summary
A 56-year-old construction superintendent was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The applicant failed to timely file federal income tax returns for tax years 2004-2010 and 2012-2013, and state tax returns for at least tax years 2005-2011. These failures resulted in an outstanding debt of $2,620 to the IRS for 2012-2013, and an $8,963 state tax lien filed in April 2014.
Additionally, the applicant had an August 2005 judgment against him for $3,123 and owed $477 to a medical provider. While some debts were resolved, the repeated failures to meet legal financial obligations raised significant security concerns.
The judge found that the applicant's conduct demonstrated a lack of judgment inconsistent with access to classified information, leading to the denial of the security clearance.
Why the Applicant Was Denied
- Applicant failed to timely file federal and state income tax returns for multiple years.
- Applicant had unresolved tax liens and a judgment against him for non-payment of legal fees.
- The applicant's conduct demonstrated a lack of judgment inconsistent with access to classified information.
Conditions Referenced
- ¶19(a)raisedInability or Unwillingness to Satisfy Debts
- ¶19(c)raisedA History of Not Meeting Financial Obligations
- ¶19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- ¶20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- ¶20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- ¶20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- ¶20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A person who fails repeatedly to fulfill his or her legal obligations does not demonstrate the high degree of good judgment and reliability required of those granted access to classified information.”
Procedural Posture
- SOR issuedJul 23, 2015
- Answer filed—Timely response requested a hearing.
- Hearing heldMay 10, 2016
- Decision dateMar 29, 2017
Cite For
- Failure to Timely File Tax Returns as a Disqualifying Condition Under Guideline F
- Lack of Judgment and Reliability Due to Financial Obligations
- Mitigating Conditions Not Applied When Failures Are Deliberate and Prolonged