Summary
A 55-year-old operational and space systems engineer was denied a security clearance under Guideline F, Financial Considerations, due to significant financial issues. The Statement of Reasons alleged that the applicant failed to file and pay federal and state income tax returns for tax years 2009 and 2010, resulting in a federal tax lien of approximately $57,366. Additionally, the applicant owed approximately $19,000 on a delinquent line of credit and a charged-off credit card debt.
Disqualifying conditions cited included a history of not meeting financial obligations, deceptive financial practices, and an inability or unwillingness to satisfy debts. While mitigating conditions such as the debt not being recent, the applicant seeking assistance, and the financial problems being largely resolved were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's failure to file and pay multiple years of federal and state income tax returns, a history of unresolved debts, and a lack of sufficient evidence demonstrating financial stability or responsible debt management. The judge concluded that granting clearance would not align with national security interests.
Why the Applicant Was Denied
- The applicant failed to file and pay Federal and state income tax returns for multiple years.
- The applicant has a history of unresolved debts and financial irresponsibility.
- Insufficient evidence was provided to demonstrate financial stability or responsible management of debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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 Income Tax as Required
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“"[N]o one has a ‘right’ to a security clearance."”
Procedural Posture
- SOR issuedJun 29, 2016
- Answer filedJul 26, 2016
- Hearing heldJul 11, 2017
- Decision dateJan 26, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Evidence of Financial Stability Despite Employment
- Impact of Financial Irresponsibility on Security Clearance Eligibility