Summary
A 28-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The applicant failed to file federal tax returns for 2011 and 2012 and owed federal and state taxes, including approximately $2,800 for tax year 2010.
Further concerns included a delinquent credit card account from 2007 with a $4,000 balance and a delinquent hospital account from 2009 owing $12,000. The applicant also had about $13,000 in student loans set to exit deferment in September 2014. Overall, the applicant admitted to having 18 delinquent accounts.
The judge found that the applicant's financial issues were not mitigated, citing a lack of evidence demonstrating good judgment and financial responsibility. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- Failed to file federal tax returns for 2011 and 2012.
- Owes federal and state taxes and has ignored delinquent debts for many years.
- Insufficient evidence to demonstrate good judgment and financial responsibility.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- F.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurFinancial problems are recent and ongoing.
- F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlInsufficient evidence to establish financial responsibility under the circumstances.
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the ProblemNo evidence of financial counseling.
- F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsNo evidence of efforts to resolve debts.
- F.2.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtNo evidence provided to dispute debts.
Key Rule Quoted
“Once a concern arises regarding an Applicant’s security clearance eligibility, there is a strong presumption against the grant or maintenance of a security clearance.”
Procedural Posture
- SOR issuedApr 1, 2016
- Answer filedApr 19, 2016Requested decision based on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateMay 31, 2017
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Insufficient Evidence of Financial Responsibility Leading to Denial
- Presumption Against Granting Security Clearance When Concerns Arise