Summary
A 46-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to significant and long-standing financial issues. The Statement of Reasons detailed several concerns, including the applicant's failure to file a federal income tax return for 2013 and an approximate $45,321 debt to the IRS for tax years 2011, 2012, and 2014. A federal tax lien of $20,371 was also filed against him in April 2011.
Additionally, the applicant was delinquent on multiple accounts, including three charged-off accounts, two past-due student loans, and three collection accounts. While documentation showed that some charged-off and collection debts were eventually paid, other significant financial liabilities remained unresolved.
The denial was primarily based on the applicant's unresolved federal tax debts, which totaled approximately $98,000. The decision noted a lack of a meaningful payment track record for his student loans and federal income tax debt, with financial issues dating back to 2008 and professional tax assistance not sought until 2014. Despite some debts being resolved and positive character references, these ongoing concerns led to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has unresolved federal tax debts totaling approximately $98,000, which raise concerns about his reliability and trustworthiness.
- The applicant failed to establish a meaningful track record of financial responsibility in paying his student loans and federal income tax debt.
- The applicant's financial issues date back to 2008, and he did not engage professional tax assistance until 2014.
Conditions Referenced
- F.19.araisedInability or Unwillingness to Satisfy Debts
- F.19.craisedA History of Not Meeting Financial Obligations
- F.19.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- F.20.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.20.crejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant's financial counseling was not sufficient to demonstrate that his financial problems are under control.
- F.20.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.20.eappliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedJun 9, 2016
- Answer filedJul 11, 2016
- Hearing heldJan 11, 2017
- Decision dateMay 31, 2017
Cite For
- Unresolved Financial Obligations Under Guideline F
- Impact of Long-standing Tax Debts on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Financial Cases