Summary
A 49-year-old technician for a Department of Defense contractor was denied a security clearance due to financial considerations under Guideline F. The Statement of Reasons detailed several delinquent debts, including a mortgage loan opened in July 2006, which showed a past-due amount of $90,703 on an April 2015 credit report. Additionally, a November 2014 credit report listed a medical collection account, delinquent since July 2009, for approximately $54.
The applicant also owed federal income taxes for multiple years, totaling $721 for 2011, $3,768 for 2012, and $5,158 for 2013, as of October 2014. Disqualifying conditions were raised under AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f), while mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(g) were applied.
The denial was based on the applicant's failure to provide documentation of debt-resolution efforts for his delinquent accounts. He also did not demonstrate financial responsibility or adherence to repayment agreements with the IRS, and his financial problems persisted for several years without evidence of improvement.
Why the Applicant Was Denied
- The applicant did not provide documentation of debt-resolution efforts for his delinquent accounts.
- He failed to demonstrate financial responsibility or adherence to repayment agreements with the IRS.
- The applicant's financial problems persisted for several years without evidence of improvement.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)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 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 issues have persisted for several years.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not identify circumstances beyond his control contributing to his financial problems.
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Counseling for the ProblemThere is no evidence that the applicant sought credit counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant provided no evidence of debt-resolution efforts.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThe applicant did not provide evidence of a new payment arrangement with the IRS.
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedMar 24, 2016
- Answer filedMay 27, 2016Applicant elected a decision on the written record.
- Hearing heldN/ANo hearing; decision based on written record.
- Decision dateOct 25, 2017
Cite For
- Failure to Provide Evidence of Debt Resolution Under Guideline F
- Importance of Demonstrating Financial Responsibility for Security Clearance
- Impact of Persistent Financial Issues on Security Clearance Eligibility