Summary
A 49-year-old electronics installer was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a history of financial difficulties, including six unpaid tax liens totaling over $260,000. These included two state tax liens from 1997 and 2006 for $3,386 and $1,810, respectively, and three federal tax liens from 2005 and 2007 for $238,763, $5,881, and $18,571.
Additionally, the applicant failed to file federal income tax returns for the years 1997 through 2001. Other financial issues included a $21,332 repossession debt from February 2003, a $407 delinquency on a military credit card, and a past child support obligation that may have been $2,400 behind. The applicant also deliberately failed to disclose these delinquencies when asked about debts over 90 days past due.
The judge found that the applicant made no payments or arrangements to address his significant tax obligations and did not demonstrate sufficient efforts to mitigate the government's concerns regarding his financial irresponsibility and personal conduct. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- Applicant has six unpaid tax liens totaling over $260,000.
- He failed to file federal income tax returns for the years 1997-2001.
- Applicant made no payments or arrangements to address his tax obligations.
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(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's financial problems were compounded by child support obligations.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlFinancial problems were extensive and not solely due to Hurricane Katrina.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemNo indication that Applicant has received financial counseling.
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 issuedAug 5, 2009
- Answer filedAug 20, 2009
- Hearing heldDec 9, 2009
- Decision dateDec 15, 2009
Cite For
- Financial Irresponsibility Under Guideline F
- Failure to File Tax Returns Under Guideline F
- Impact of Personal Conduct on Security Clearance Eligibility