Summary
A 54-year-old senior systems architect engineer and business owner was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged the applicant failed to timely file federal and state income tax returns for tax years 2006 and 2007, owed a balance to the federal government for those years, and had a $582 delinquent debt with a telecommunications provider.
The applicant successfully mitigated these concerns. The tax filing issues were isolated to a specific two-year period and had not recurred in nearly a decade. Before the SOR was issued, the applicant took corrective action by filing the overdue tax returns and paying the owed taxes.
Furthermore, the applicant received financial counseling and committed to timely filing taxes in the future. These actions demonstrated current financial responsibility, leading to the clearance being granted.
Why the Applicant Prevailed
- The applicant's tax filing issues were limited to a specific two-year period and have not recurred in nearly a decade.
- The applicant took corrective action by filing the overdue tax returns and paying the owed taxes before the SOR was issued.
- The applicant has received financial counseling and has committed to timely filing taxes in the future.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Inability 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)appliedThe 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
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe situation was not beyond the applicant's control.
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem From a Legitimate and Credible Source
- 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
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJun 6, 2016
- Answer filedAug 8, 2016
- Hearing heldJul 27, 2017
- Decision dateMay 9, 2018
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Importance of Timely Tax Filing for Security Clearance Eligibility
- Whole-person Concept in Security Clearance Evaluations