Summary
A 38-year-old federal contractor was denied a security clearance under Guidelines E (Personal Conduct) and F (Financial Considerations) due to a history of financial irresponsibility and personal conduct issues. The applicant failed to timely file federal income tax returns for 2009 and 2011, and state income tax returns from 2008 through 2011. He was also indebted to both federal and state governments for delinquent taxes for 2010 and 2010-2011, respectively. Additionally, a judgment was entered against him for failing to repay a loan, and he defaulted on a $2,500 loan from a friend, having used the money for bills and drugs.
The denial was also based on the applicant's failure to disclose these tax issues on his October 2012 Security Clearance Application (SCA). Disqualifying conditions included a history of not meeting financial obligations, deceptive conduct, and drug involvement. While some mitigating conditions related to financial issues were considered, they were insufficient to overcome the concerns.
The judge determined that the applicant's repeated failures to file tax returns and his provision of false information on security clearance applications regarding his tax filings and drug use raised significant doubts about his current reliability and judgment. These issues, combined with past drug use, led to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant failed to timely file Federal and state income tax returns for multiple years.
- Applicant provided false information on his security clearance applications regarding his tax filings and drug use.
- The applicant's repeated conduct of failing to file tax returns raised doubts about his current reliability and judgment.
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 as Required
- E.16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- F.20(c)appliedThe 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 ControlApplicant has an installment payment plan with the IRS and has paid some delinquent state taxes.
- F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant has made payments towards his delinquent taxes and satisfied a judgment through garnishment.
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 issuedNov 14, 2015
- Answer filedDec 10, 2015
- Hearing heldJul 18, 2016
- Decision dateSep 12, 2016
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Issues of Personal Conduct Related to Dishonesty and Lack of Candor Under Guideline E
- The Impact of Past Drug Use on Security Clearance Eligibility