Summary
A 41-year-old government contractor employee was denied a security clearance due to significant financial concerns under Guideline F. The Statement of Reasons cited 31 delinquent debts totaling approximately $26,079, two unpaid tax liens for $12,262 and $863, and a failure to file federal and state income tax returns for tax years 2010 and 2011. These issues raised disqualifying conditions F.19(a), F.19(c), and F.19(g).
While mitigating conditions F.20(a), F.20(b), F.20(c), F.20(d), and F.20(e) were considered, they were not sufficient to overcome the concerns. The denial was based on the applicant's numerous unresolved debts and unpaid tax liens, her failure to file tax returns for 2010 and 2011, and a lack of evidence demonstrating financial counseling or concrete efforts to repay her debts.
Ultimately, the applicant failed to show responsible actions to address her financial difficulties or provide documentation for her unfiled tax returns, leading to the denial of her eligibility for access to sensitive information.
Why the Applicant Was Denied
- Applicant has numerous unresolved debts and unpaid tax liens.
- Applicant failed to file federal and state income tax returns for 2010 and 2011.
- No evidence of financial counseling or efforts to repay debts was presented.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns
- F.20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- F.20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlSome debts were incurred during unemployment and due to a medical condition.
- F.20(c)rejectedReceived or Is Receiving Counseling for the Problem
- F.20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors
- F.20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
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 issuedNov 8, 2014
- Answer filedNov 24, 2014Applicant elected to have her case decided on the written record.
- Hearing held—No hearing; decided on written record.
- Decision dateJul 23, 2015
Cite For
- Denial of Eligibility Due to Unresolved Financial Issues Under Guideline F
- Failure to Demonstrate Responsible Action Regarding Debts
- Impact of Unfiled Tax Returns on Trustworthiness Determination