Summary
The applicant, a 37-year-old DOD contractor, sought a security clearance under Guideline F due to past financial issues, including tax liens and delinquent accounts. He demonstrated significant efforts to resolve these debts and established financial stability, leading to a favorable decision.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $3,612 state tax lien entered in January 2012 (1.a). $8,356 state tax lien entered in November 2011 (1.b). failure to timely file federal income tax returns for 2007 and 2008 and failure to pay the Internal Revenue Service (IRS) $7,500 for those tax years (1.c). failure to timely file state tax returns and pay state taxes for tax years 2007, 2008, 2009, and 2010, resulting in a $20,415 state tax debt (1.d). failure to timely file state tax returns and pay state taxes for tax years 2007, 2008, 2009, and 2010, resulting in a $20,415 state tax debt (1.e). failure to timely file state tax returns and pay state taxes for tax years 2007, 2008, 2009, and 2010, resulting in a $20,415 state tax debt (1.f). $3,100 student loan account that was placed for collection (1.g). $751 cell phone account that was placed for collection (1.h). $250 speeding ticket placed for collection (1.i). $55 speeding ticket placed for collection (1.j).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e), AG ¶ 20(g). The decision turned on the following: Applicant resolved all debts alleged in the SOR, demonstrating financial responsibility; He took proactive steps to address tax issues upon discovering them in 2015; Applicant's financial situation improved significantly, and he is now current on all taxes.
Why the Applicant Prevailed
- Applicant resolved all debts alleged in the SOR, demonstrating financial responsibility.
- He took proactive steps to address tax issues upon discovering them in 2015.
- Applicant's financial situation improved significantly, and he is now current on all taxes.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Tax Returns
- AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
- AG ¶ 20(b)appliedConditions Beyond the Person's Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
- AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Debt
- AG ¶ 20(g)appliedArrangements with Tax Authority
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedFeb 29, 2016
- Answer filedApr 18, 2016
- Hearing heldSep 5, 2017
- Decision dateSep 28, 2017
Cite For
- Mitigation of Financial Issues Under Guideline F
- Demonstrating Proactive Steps to Resolve Tax Debts
- Whole-person Concept in Evaluating Financial Responsibility