Summary
A 48-year-old software engineer employed by a defense contractor was denied a security clearance due to financial considerations under Guideline F. The Statement of Reasons detailed several financial issues, including the applicant's failure to timely file federal and state income tax returns for the tax years 2010, 2011, 2012, 2013, and 2014. Additionally, the applicant had a bank credit card with a $27,500 limit that was charged off with a past due amount of $342 and placed for collection.
Disqualifying conditions related to financial issues were raised, while several mitigating conditions were considered. However, the judge determined that the applicant did not sufficiently mitigate the concerns.
The denial was based on the applicant's failure to timely file tax returns for multiple years and a history of delinquent debts, coupled with an insufficient demonstration of good-faith efforts to resolve these financial obligations.
Why the Applicant Was Denied
- The applicant failed to timely file federal and state income tax returns for multiple years.
- The applicant had a history of delinquent debts and did not demonstrate a good-faith effort to resolve them.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues were ongoing and not infrequent.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not demonstrate that he acted responsibly under the circumstances.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant did not provide evidence of counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not show a good-faith effort to resolve his debts.
Key Rule Quoted
“Eligibility for a security clearance and access to classified information is denied.”
Procedural Posture
- SOR issuedOct 10, 2015Applicant received the SOR on October 22, 2015.
- Answer filedNov 12, 2015
- Hearing heldApr 25, 2016Record kept open until June 27, 2016.
- Decision dateJan 26, 2017
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Timely Filing of Tax Returns as a Security Clearance Requirement
- Impact of Unresolved Debts on Security Clearance Eligibility