Summary
A 51-year-old information technology worker and U.S. Marine Corps veteran was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The Statement of Reasons detailed a federal tax lien from January 2015 for $30,677, child support arrears totaling $16,565, and a failure to file federal income tax returns for 2011 and 2012.
Additionally, the applicant had multiple outstanding debts, including a bank debt of $1,639, a credit card debt of $3,327, and various telecommunications, utilities, and other debts ranging from $121 to $1,530. These financial issues raised disqualifying conditions under Guideline F.
Despite the consideration of several potential mitigating conditions, the judge found insufficient evidence that the applicant had resolved these financial problems. The decision concluded that the applicant's financial distress presented unmitigated security concerns, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant failed to file federal income tax returns for 2011 and 2012.
- The applicant has a federal tax lien of $30,677 and child support arrears of $16,565.
- The applicant did not provide sufficient evidence of resolution of financial issues.
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)rejectedThe Individual Has Received or Is Receiving Financial Counseling
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
- AG ¶ 20(f)notedThe Affluence Resulted From a Legal Source of Income
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJun 16, 2016
- Answer filedSep 6, 2016Applicant requested a decision without a hearing.
- Hearing held—
- Decision dateJun 30, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Unfiled Tax Returns on Security Clearance Eligibility
- Insufficient Evidence of Financial Resolution as a Basis for Denial