Summary
A 51-year-old federal contractor and 90% disabled veteran was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons cited his failure to file federal income tax returns for 2010 and 2011, a student loan charged off for $77,964, and four additional delinquent consumer debts totaling $3,844.
Disqualifying conditions F.1.a (inability to satisfy debts), F.1.c (unwillingness to satisfy debts), and F.1.g (financial problems due to irresponsible spending) were raised. While mitigating conditions F.2.b (financial problems not recent), F.2.c (problems due to circumstances beyond control), and F.2.d (good-faith effort to resolve) were applied, they were insufficient to overcome the concerns.
The denial was based on the applicant's failure to file the specified tax returns, five unresolved delinquent debts totaling $81,808, and a lack of sufficient evidence to demonstrate that his financial problems were unlikely to recur.
Why the Applicant Was Denied
- Applicant failed to file federal income tax returns for 2010 and 2011 as required.
- Applicant has five unresolved delinquent debts totaling $81,808.
- Insufficient evidence was provided to demonstrate that financial problems are unlikely to recur.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlCircumstances beyond his control contributed to Applicant’s financial problems.
- F.2.cappliedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant has apparently sought financial counseling through the debt relief service.
- F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant has not provided evidence of any efforts he may have taken to repay or otherwise resolve his debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedFeb 9, 2016
- Answer filedMar 21, 2016Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on the written record.
- Decision dateApr 19, 2017
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Insufficient Evidence to Mitigate Financial Concerns
- Whole-person Concept Applied in Evaluating Financial Reliability