Summary
A 62-year-old defense contractor with a long history of security clearance was denied clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from a pattern of failing to file federal and state income tax returns for multiple years.
Specifically, the applicant failed to file federal and state tax returns for tax years 2005, 2006, 2007, and 2008. This was not an isolated incident, as his wages were garnished by a state government in 1997 for an unfiled 1995 state tax return, resulting in an $8,183 assessment, of which approximately $6,000 was garnished. Although he later filed and received a refund of $6,955.13 in 1998, subsequent garnishments occurred for tax years 2005 and 2006 by the state for $3,841 and $6,000, respectively.
The judge found that the applicant did not demonstrate responsible behavior regarding his tax obligations. His explanations for failing to file were deemed insufficient, and he did not provide documentation to substantiate claims of having filed returns for 2005, 2006, and 2007. Consequently, the security clearance was DENIED.
Why the Applicant Was Denied
- The applicant failed to file federal and state income tax returns for tax years 2005 through 2009, demonstrating a pattern of non-compliance with legal obligations.
- The applicant's explanations for his failure to file were deemed insufficient to mitigate the security concerns raised by his conduct.
- The applicant did not provide documentation to substantiate his claims of having filed tax returns for 2005, 2006, and 2007.
Conditions Referenced
- F.19(g)raisedFailure to File Annual Federal, State or Local Income Tax Returns as Required or Fraudulent Filing of the Same.
- E.16(c)raisedCredible Adverse Information in Several Adjudicative Issue Areas That Is Not Sufficient for an Adverse Determination Under Any Other Single Guideline.
- E.16(e)raisedPersonal Conduct, or Concealment of Information About One's Conduct, That Creates a Vulnerability to Exploitation, Manipulation, or Duress.
- F.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control.The applicant's difficulties were not sufficient to mitigate the ongoing failure to file tax returns.
- E.17(c)rejectedThe Offense Is so Minor, or so Much Time Has Passed, or the Behavior Is so Infrequent, or It Happened Under Such Unique Circumstances That It Is Unlikely to Recur.The applicant's repeated failures to file tax returns indicate a pattern of behavior that is unlikely to recur.
- E.17(d)rejectedThe Individual Has Acknowledged the Behavior and Obtained Counseling to Change the Behavior or Taken Other Positive Steps to Alleviate the Stressors.The applicant did not demonstrate that he has taken positive steps to avoid repeating his failures to file tax returns.
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 issuedJun 9, 2010
- Answer filedJul 16, 2010
- Hearing heldNov 9, 2010
- Decision dateDec 29, 2010
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Insufficient Mitigating Circumstances Regarding Personal Conduct Under Guideline E
- Whole-person Assessment in Security Clearance Determinations.