Summary
A 43-year-old federal contractor was denied a security clearance under Guideline F, Financial Considerations, due to a history of significant financial issues. The Statement of Reasons detailed a Chapter 7 bankruptcy filing in 2009, a federal tax lien from September 2011 for $34,899, and another federal tax lien from March 2014 for $24,121. Additionally, the applicant had 12 collection, past-due, or charged-off accounts totaling approximately $26,204, with three of these being medical collection accounts amounting to about $836.
The disqualifying conditions raised included AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f). While mitigating conditions AG ¶ 20(b) and AG ¶ 20(g) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's failure to provide adequate evidence to explain or mitigate her financial problems. The judge noted the unresolved federal tax liens totaling $59,020 and multiple delinquent accounts of approximately $26,000, concluding that these issues raised doubts about her reliability and judgment.
Why the Applicant Was Denied
- The applicant did not present sufficient evidence to explain or mitigate her financial problems.
- The applicant has unresolved federal tax liens totaling $59,020 and multiple delinquent accounts totaling approximately $26,000.
- The applicant's financial issues raised doubts about her reliability and judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's medical issues were acknowledged, but the judge found insufficient evidence of good faith efforts to resolve debts.
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount OwedThere was no documentation showing the applicant had made arrangements with the IRS regarding the tax liens.
Key Rule Quoted
“The clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
Procedural Posture
- SOR issuedJun 10, 2016
- Answer filedAug 26, 2016Requested decision based on written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateJul 20, 2017
Cite For
- Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
- Impact of Unresolved Tax Liens on Security Clearance Eligibility
- Burden of Proof on Applicant to Demonstrate Good Faith Efforts in Financial Matters