Summary
A 61-year-old security officer was denied a security clearance under Guideline F, Financial Considerations, due to significant tax debts and a Chapter 13 bankruptcy filing. The Statement of Reasons detailed delinquent federal and state income taxes totaling approximately $37,832 for tax years 2009 through 2011. His bankruptcy petition listed $31,000 in federal taxes and $6,832 in state taxes for those years, alongside $44,565 in unsecured consumer debt.
Disqualifying conditions were raised, citing the applicant's substantial indebtedness, a history of not meeting financial obligations, and an inability to live within his means. While mitigating conditions were considered, including the debts not being recent, the issues being largely resolved, and the applicant seeking assistance, these were ultimately insufficient.
The denial was based on the applicant's failure to mitigate the security concerns. He did not provide evidence of a consistent payment history for his tax delinquencies, nor did he demonstrate that his financial issues were unlikely to recur.
Why the Applicant Was Denied
- Applicant did not mitigate the security concerns regarding his financial problems.
- He failed to provide evidence of a consistent track record of payments on his tax delinquencies.
- The applicant did not demonstrate that his financial issues were unlikely to recur.
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
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurApplicant's tax delinquencies are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlApplicant did not identify circumstances beyond his control contributing to his financial issues.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemNo evidence of credit counseling was provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant failed to establish a track record of payments or adherence to payment plans.
- AG ¶ 20(g)rejectedArrangements with Tax Authority to File or Pay the Amount OwedNo evidence of compliance with payment arrangements was provided.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMar 29, 2016
- Answer filedJun 10, 2016Applicant elected a decision on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateJan 30, 2018
Cite For
- Failure to Demonstrate Financial Responsibility Under Guideline F
- Ongoing Tax Delinquencies as a Security Concern
- Lack of Evidence for Mitigating Financial Conditions