Summary
A 50-year-old senior security engineer was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from a history of failing to timely file federal tax returns and approximately $38,000 in outstanding federal tax debt, some of which has been unresolved since the late 1990s.
The Statement of Reasons (SOR) detailed three federal tax liens: one filed in October 2011 for $18,735, another in May 2011 for $62,272, and a third in 2005 for $1,838. Disqualifying conditions 19(a), 19(c), and 19(g) were raised, while mitigating conditions 20(a), 20(b), 20(c), 20(d), and 20(e) were applied.
Ultimately, the judge found that the applicant's longstanding tax issues, including the failure to timely file returns and the current $38,000 debt, demonstrated poor self-control and a lack of judgment. These concerns about his reliability led to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has a history of failing to timely file federal tax returns for multiple years.
- The applicant currently owes approximately $38,000 in federal taxes, which has been outstanding since the late 1990s.
- The applicant's financial issues indicate poor self-control and lack of judgment, raising questions about his reliability.
Conditions Referenced
- 19(a)raisedInability or Unwillingness to Satisfy Debts
- 19(c)raisedA History of Not Meeting Financial Obligations
- 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- 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 Control
- 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Failure to file tax returns suggests that an applicant has a problem with complying with well-established governmental rules and systems.”
Procedural Posture
- SOR issuedDec 22, 2015
- Answer filedJan 12, 2016
- Hearing heldJun 7, 2016
- Decision dateAug 31, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Tax Debts Under Guideline F
- Impact of Failure to Timely File Tax Returns on Security Clearance Eligibility
- Consideration of Financial Responsibility in Security Clearance Determinations