Summary
A 55-year-old field service technician was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant acknowledged responsibility for a telecommunications debt of $556, which he stated he would pay when able. More significantly, he also acknowledged four unresolved tax liens totaling $27,696, with one lien for $9,267 entered in 2005, and three others for $8,586, $4,668, and $5,175, all entered in 2012.
Further financial concerns arose from the applicant's failure to timely file federal income tax returns for multiple years, specifically 2003, 2005, 2007, 2008, 2009, and 2011. While the judge found that personal conduct concerns were mitigated, the financial issues were not.
The decision to deny access to classified information was based on the unmitigated financial considerations, primarily the outstanding tax liens and the history of unfiled tax returns.
Why the Applicant Was Denied
- Applicant has four unresolved tax liens totaling $27,696 filed in 2005 and 2012.
- Applicant failed to timely file federal income tax returns for tax years 2003, 2005, 2007, 2008, 2009, and 2011.
- The judge found that financial considerations security concerns were not mitigated.
Conditions Referenced
- 19(a)raisedInability or Unwillingness to Satisfy Debts
- 19(c)raisedA History of Not Meeting Financial Obligations
- 19(g)rejectedFailure to File Annual Federal, State, or Local Income Tax Returns as Required or the Fraudulent Filing of the SameAG ¶ 19(g) is not established.
- 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- 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/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Failure to file tax returns suggests that an applicant has a problem with complying with well-established governmental rules and systems.”
Procedural Posture
- SOR issuedMar 2, 2016
- Answer filedMay 9, 2016
- Hearing heldOct 5, 2016
- Decision dateFeb 14, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Tax Liens
- Failure to Timely File Federal Income Tax Returns as a Disqualifying Factor
- Mitigating Conditions Not Applicable in Financial Considerations Cases