Summary
A 60-year-old federal contractor with over 19 years of service was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) cited several issues, including the applicant's failure to file federal income tax returns for 2011 and 2012, and state income tax returns for 2009-2012. Additionally, the SOR noted a federal tax debt of $1,100, a 2013 Chapter 7 bankruptcy, and a $77 collection account. These issues raised disqualifying conditions F.1.a, F.1.c, and F.1.g.
However, the applicant successfully mitigated these concerns by demonstrating responsible actions. Before the SOR was issued, she filed all outstanding federal and state tax returns. The decision also acknowledged that some financial difficulties stemmed from circumstances beyond her control, such as her ex-husband's job loss.
Ultimately, the applicant demonstrated a good-faith effort to resolve her debts and improve her financial situation, including improving her credit score. Mitigating conditions F.2.a, F.2.b, F.2.c, and F.2.d were applied, leading to the granting of her security clearance.
Why the Applicant Prevailed
- The applicant filed all necessary federal and state tax returns before the SOR was issued.
- The applicant's financial issues were largely due to circumstances beyond her control, such as her ex-husband's job loss.
- The applicant demonstrated a good-faith effort to resolve her debts and improve her financial situation.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedFailure to File Annual Federal, State, or Local Income Tax Returns
- F.1.graisedA History of Not Meeting Financial Obligations
- F.2.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.2.cappliedThe 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 Control
- F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMar 24, 2016
- Answer filedApr 18, 2016
- Hearing heldOct 25, 2016
- Decision dateFeb 1, 2017
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of Circumstances Beyond the Applicant's Control
- Importance of Demonstrating Responsible Financial Behavior