Summary
The applicant, a 49-year-old curriculum developer and U.S. Navy retiree, faced security concerns under Guideline F (Financial Considerations) due to delinquent debts and failure to timely file tax returns. The judge found that the applicant had resolved his financial issues and demonstrated responsible behavior, leading to a decision to grant his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: credit-card account referred for collection of $6,551 in February 2010. Applicant settled this debt and received an IRS Form 1099-C, reflecting that $4,768 was cancelled in December 2012 (1.a). credit-card account referred for collection of $1,098 in February 2010. Applicant settled this debt and received an IRS Form 1099-C, reflecting that $661 was cancelled in October 2010 (1.b). medical bill referred for collection of $560 in July 2009. The medical debt was incurred by Applicant’s daughter, who was hospitalized but did not file an insurance claim (1.c). telecommunications bill referred for collection of $100 in June 2014. Applicant testified that he initially disputed this debt but then paid it to get rid of it (1.d). failure to timely file federal and state income tax returns for 2011, 2012, and 2013 (1.e). $7,370 in past-due federal and state taxes for tax years 2011, 2012, and 2013 (1.f). failure to timely file federal and state income tax returns for 2014 (1.g).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(e), AG ¶ 19(g). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(c). The decision turned on the following: The applicant resolved all delinquent debts prior to the SOR; He filed all past-due tax returns and paid the taxes owed; The applicant demonstrated financial stability and responsible behavior post-issues.
Why the Applicant Prevailed
- The applicant resolved all delinquent debts prior to the SOR.
- He filed all past-due tax returns and paid the taxes owed.
- The applicant demonstrated financial stability and responsible behavior post-issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(c)appliedReceiving Counseling or Evidence of Problem Resolution
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 14, 2016
- Answer filedJul 18, 2016
- Hearing heldMar 21, 2017
- Decision dateMay 24, 2017
Cite For
- Resolution of Delinquent Debts Under Guideline F
- Mitigation of Financial Issues Due to Personal Circumstances
- Demonstration of Financial Stability After Prior Issues