Summary
The applicant, a 58-year-old former Navy service member, sought a security clearance under Guideline F due to financial difficulties, including overdue debts and failure to file tax returns. Despite resolving several debts, the applicant's failure to file state tax returns and the overall financial history raised concerns about reliability and trustworthiness, leading to a denial of the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This overdue debt is cited in the SOR for a charged-off mortgage account in the amount of $77,759 (1.a). This overdue debt is cited in the SOR for a delinquent account in the amount of $9,706 (1.b). This overdue debt is cited in the SOR for a delinquent account in the amount of $7,730 (1.c). This overdue debt is cited in the SOR for a delinquent account in the amount of $4,364 (1.d). It is alleged in the SOR that Applicant failed to timely file his Federal tax returns for tax years 2008 through 2011, and he failed to pay his Federal taxes for those years (1.e). It is alleged in the SOR that Applicant failed to timely file his state tax returns for tax years 2009 and 2010, and he failed to pay his state taxes for those years (1.f).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(g). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant failed to file state tax returns for multiple years, raising concerns about financial responsibility; The applicant's financial difficulties were significant and unresolved in certain areas, particularly regarding state taxes.
Why the Applicant Was Denied
- The applicant failed to file state tax returns for multiple years, raising concerns about financial responsibility.
- The applicant's financial difficulties were significant and unresolved in certain areas, particularly regarding state taxes.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's financial issues stemmed from personal circumstances, the failure to file state tax returns remained a concern.
- AG ¶ 20(d)appliedThe Individual Has Demonstrated a Clear Intent to Address Financial IssuesThe applicant resolved several debts and filed overdue federal tax returns.
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedMay 19, 2015
- Answer filedSep 3, 2015
- Hearing heldJan 26, 2016
- Decision dateSep 29, 2016
Cite For
- Failure to File State Tax Returns as a Disqualifying Condition Under Guideline F
- Consideration of Personal Circumstances in Financial Difficulties
- The Importance of Resolving All Tax Obligations for Security Clearance Eligibility