Summary
A 61-year-old supply technician, employed by a defense contractor, was denied a security clearance under Guideline F (Financial Considerations). The denial stemmed from the applicant's failure to timely file federal and state income tax returns for nine years, specifically from 2005 through 2014. This resulted in an outstanding tax debt of approximately $5,700.
The Statement of Reasons alleged that the applicant failed to file required tax returns for the specified period and owed delinquent taxes totaling about $10,000. While the applicant entered into an installment agreement with the IRS, the judge found this insufficient to demonstrate financial responsibility.
The denial was based on the applicant's failure to resolve her state tax issues, lack of evidence of financial counseling, and an inconsistent track record of compliance with tax obligations. Despite the application of several mitigating conditions, the judge concluded there was insufficient evidence of proactive measures to resolve the tax issues, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant failed to timely file federal and state income tax returns for nine years.
- She owes approximately $5,700 in delinquent taxes and has not resolved her state tax issues.
- The applicant did not provide evidence of financial counseling or a consistent track record of compliance with tax obligations.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)appliedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the Problem
- AG ¶ 20(d)notedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve Debts
Key Rule Quoted
“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.”
Procedural Posture
- SOR issuedJun 8, 2016
- Answer filedJul 6, 2016
- Hearing heldNov 15, 2016Applicant waived the 15-day notice requirement.
- Decision dateJan 26, 2017
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Insufficient Evidence of Financial Responsibility Leading to Denial of Clearance
- Burden of Proof on Applicant to Demonstrate Eligibility for Security Clearance