Summary
A 62-year-old former defense contractor and substitute teacher was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The applicant failed to file federal income tax returns for 2007 and owed approximately $130,000 in unpaid federal taxes, secured by three federal tax liens for 2010 and 2011.
Additionally, the applicant failed to file state income tax returns for 2007 and 2009-2011, resulting in two state tax liens for 2013 totaling $3,478 and $2,946. The applicant also accumulated $80,000 in gambling losses between 2009 and 2010, which were attributed to PTSD.
The denial was based on the substantial unpaid federal tax debts, the failure to file multiple state tax returns, and insufficient evidence of financial stability or rehabilitation. The applicant's gambling history, linked to PTSD, further raised concerns regarding judgment and reliability.
Why the Applicant Was Denied
- The applicant has significant unpaid federal tax debts totaling over $130,000, which remain unresolved.
- The applicant failed to file state income tax returns for multiple years and did not provide sufficient evidence of financial stability or rehabilitation.
- The applicant's gambling history, linked to PTSD, raised concerns about his judgment and reliability.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.graisedFailure to File Federal, State . . . Income Tax Returns as Required
- F.1.iraisedCompulsive or Addictive Gambling
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the Problem
- F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.2.eappliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMar 4, 2016
- Answer filedMar 29, 2016
- Hearing held—Decided on the written record in lieu of a hearing.
- Decision dateApr 27, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Gambling on Financial Stability and Security Clearance Eligibility
- Consideration of PTSD in Relation to Financial Conduct and Judgment