Summary
A 39-year-old defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) cited multiple instances of failing to timely pay federal income taxes totaling $25,390, and state income taxes totaling $2,129. Additionally, the applicant failed to timely file federal and state tax returns for tax years 2009 through 2011. Two new medical accounts, totaling $2,195, were also in collection status. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), (c), and (f).
However, the applicant successfully mitigated these concerns by demonstrating responsible actions. Before the SOR was issued, she filed all delinquent federal and state tax returns and resolved her state tax debts. She also negotiated an installment agreement with the IRS and maintained timely payments through at least June 2014.
The decision noted that the applicant's financial issues were largely due to circumstances beyond her control, and she exhibited a good-faith effort to resolve her debts. Mitigating conditions applied included AG ¶ 20(a), (b), (d), and (g), leading to the granting of her security clearance.
Why the Applicant Prevailed
- The applicant filed delinquent federal and state tax returns and resolved her state tax debts before the SOR was issued.
- She negotiated an installment agreement with the IRS and made timely payments through at least June 2014.
- The applicant's financial issues were attributed to circumstances largely beyond her control, and she has shown a good-faith effort to resolve her debts.
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 Income Tax as Required
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedDec 9, 2016
- Answer filedDec 30, 2016
- Hearing held—Decision made on the record without a hearing.
- Decision dateOct 25, 2017
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of Circumstances Beyond the Applicant's Control in Financial Matters
- Demonstrating Good-faith Efforts to Resolve Debts as a Mitigating Factor