Summary
A 68-year-old former federal employee was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from his failure to timely file federal income tax returns for the years 2009 through 2014. Additionally, he owed $4,994 in delinquent state taxes and $3,092 in delinquent federal taxes.
The Statement of Reasons specifically cited these unfiled returns and outstanding tax debts. Disqualifying conditions related to financial irresponsibility were raised, including a history of not meeting financial obligations and an inability or unwillingness to satisfy debts.
While several mitigating conditions were considered, such as the debt not being recent or the applicant demonstrating a good-faith effort to resolve the issues, the judge ultimately found insufficient evidence to alleviate the financial concerns. The applicant did not provide adequate documentation to corroborate his claims of resolving the tax issues, leading to doubts about his reliability and trustworthiness. Consequently, the security clearance was denied.
Why the applicant was denied
- The applicant failed to timely file federal income tax returns for tax years 2009 through 2014.
- The applicant owed $4,994 in delinquent state taxes and $3,092 in delinquent federal taxes.
- The applicant did not provide documentation to corroborate claims of resolving his tax issues.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax 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 problems continue to cast doubt on his reliability.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile some conditions were beyond his control, he did not act responsibly under the circumstances.
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial CounselingThe applicant has not received financial counseling.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not provide evidence of a good-faith effort to resolve debts.
- AG ¶ 20(g)rejectedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant did not provide documentation to show compliance with tax arrangements.
Key rule quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural posture
- SOR issuedJan 6, 2017
- Answer filedFeb 21, 2017Applicant elected to have case decided on written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateJan 11, 2018
Cite for
- Failure to Mitigate Financial Concerns Under Guideline F
- Impact of Unresolved Tax Issues on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Security Clearance Decisions