Summary
A 48-year-old government contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The Statement of Reasons detailed 14 past-due debts totaling approximately $19,693, and a state income tax debt of about $3,357. Additionally, the applicant failed to file required Federal and state income tax returns for tax years 2012 and 2014, and had a history of two dismissed Chapter 13 bankruptcy filings in 2002 and 2006, the latter due to a defaulted payment plan.
The decision cited Disqualifying Conditions F.19(a), F.19(c), and F.19(d). While Mitigating Conditions F.20(a) and F.20(d) were considered, they were not sufficient to overcome the concerns. The applicant admitted to the debts and tax filing failures.
Despite being granted time to submit documentation of financial improvements, the applicant provided no additional evidence. Consequently, the judge found insufficient evidence to mitigate concerns regarding the applicant's reliability and trustworthiness, leading to the denial of the security clearance.
Why the applicant was denied
- Applicant admitted to 14 past-due debts totaling approximately $19,693 and a state income tax debt of about $3,357.
- Applicant failed to file Federal and state income tax returns for tax years 2012 and 2014 as required.
- Despite being given time to provide documentation of financial improvements, Applicant submitted no additional evidence.
Conditions referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.19(d)raisedFailure to File Annual Federal, State, or Local Income Tax as Required
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's financial issues are ongoing and do not cast doubt on his current reliability.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant has not demonstrated a good-faith effort to resolve his debts.
Key rule quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural posture
- SOR issuedJun 17, 2016
- Answer filedJul 18, 2016
- Hearing heldSep 29, 2016
- Decision dateJun 6, 2017
Cite for
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Failure to File Tax Returns on Security Clearance Eligibility
- Insufficient Evidence of Financial Rehabilitation in Security Clearance Cases