Summary
The applicant, a 59-year-old employee of a Department of Defense contractor, sought a security clearance under Guideline F due to significant financial issues, including multiple delinquent debts and failure to file tax returns. The judge found that the applicant's financial irresponsibility raised security concerns that were not mitigated by any evidence of resolution or extenuating circumstances, leading to a denial of the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: failing to file federal tax returns for tax year 2012 (1.a). failing to file state income tax returns for tax years 2004 – 2007 and 2012 (1.b). a $5,061 delinquent federal income tax debt for tax year 2012 (1.c). a $2,848 debt owed as a result of an automobile repossession (1.d). a $1,454 credit card account placed for collection (1.e). a $801 delinquent cable television account placed for collection (1.f). a $776 electricity bill placed for collection (1.g). a $776 electricity bill placed for collection (1.h). a $436 delinquent cell phone account placed for collection (1.i). a $218 delinquent cell phone account placed for collection (1.j). a $1,382 judgment entered against Applicant in 2011 (1.k). a $1,076 delinquent account placed for collection (1.l). a $917 delinquent cell phone account placed for collection (1.m). a $500 delinquent medical bill (1.n). a $219 delinquent cell phone account placed for collection (1.o).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(g). The decision turned on the following: The applicant admitted to failing to file federal and state tax returns for multiple years; The applicant had a total of $16,464 in unresolved delinquent debts; The applicant provided no evidence of having paid any of the alleged debts or filed tax returns.
Why the Applicant Was Denied
- The applicant admitted to failing to file federal and state tax returns for multiple years.
- The applicant had a total of $16,464 in unresolved delinquent debts.
- The applicant provided no evidence of having paid any of the alleged debts or filed tax returns.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 19(g)appliedFailure to File Annual Federal, State, or Local Income Tax Returns
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances in such a way as to meet his financial obligations.”
Procedural Posture
- SOR issuedAug 24, 2015
- Answer filedSep 18, 2015
- Hearing heldAug 25, 2016
- Decision dateDec 28, 2016
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Significant Unresolved Debts Impacting Security Clearance Eligibility
- Lack of Evidence to Mitigate Financial Concerns in Security Clearance Cases