Summary
A 41-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The Statement of Reasons cited his failure to file federal and state income taxes for 2010 and 2011, and at least 29 delinquent or past-due debts totaling over $52,397. Additionally, his student loans went into default due to a lack of required payments.
Disqualifying conditions under Guideline F were raised, specifically concerning a history of not meeting financial obligations, an inability or unwillingness to satisfy debts, and a history of financial problems. While some mitigating conditions were applied, such as the financial problems not being recent and the applicant having initiated efforts to resolve some debts, these were insufficient to overcome the security concerns.
The denial was ultimately based on the applicant's failure to file the specified tax returns, the substantial amount of unresolved debt, and his inability to provide sufficient evidence demonstrating a likelihood of resolving his financial problems in the near future.
Why the Applicant Was Denied
- Applicant failed to file federal and state income tax returns for 2010 and 2011.
- Applicant has a significant amount of unresolved debt totaling over $52,000.
- Applicant did not provide sufficient evidence to show he is likely to resolve his financial problems in the near future.
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(c)rejectedThe 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 not sought or received any financial counseling.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile uncontrollable circumstances contributed to financial issues, the applicant did not demonstrate responsible actions to address them.
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are ongoing and unresolved.
Key Rule Quoted
“A security clearance decision is intended only to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedJan 16, 2016Applicant timely responded.
- Answer filedFeb 1, 2016
- Hearing heldAug 11, 2016Record closed on 08/15/2016.
- Decision dateFeb 22, 2017
Cite For
- Failure to File Taxes as a Disqualifying Condition Under Guideline F
- Significant Unresolved Debt as a Basis for Security Clearance Denial
- Lack of Financial Counseling as a Factor in Assessing Financial Responsibility