Summary
The applicant, a 56-year-old senior system engineer with a history of financial issues, contested the Department of Defense's intent to revoke his security clearance under Guideline F. Despite efforts to resolve his debts, including a past-due mortgage and significant tax liabilities, the judge found that the applicant's ongoing tax problems and history of financial irresponsibility raised serious concerns about his reliability and judgment. The application for clearance was denied.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: past-due mortgage loan in amount of $9,249 (1.a). $20,793 charged-off account (1.b). $10,808 charged-off account (1.c). $6,721 charged-off account (1.d). $4,589 charged-off account (1.e). $2,981 collection account (1.f). $185 charged-off account (1.g). $6,921 unpaid judgment (1.h). $2,635 state tax lien (1.i). $12,000 in back taxes owed to the IRS for tax year 2008 (1.j). wage garnishment in August 2013 for about $1,500 (1.k).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has a significant history of financial problems, including unpaid taxes and charged-off accounts; The applicant's tax issues are extensive, ongoing, and date back to before his period of underemployment; Despite some progress in addressing debts, the applicant's financial irresponsibility raises doubts about his reliability and judgment.
Why the applicant was denied
- The applicant has a significant history of financial problems, including unpaid taxes and charged-off accounts.
- The applicant's tax issues are extensive, ongoing, and date back to before his period of underemployment.
- Despite some progress in addressing debts, the applicant's financial irresponsibility raises doubts about his reliability and judgment.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues were exacerbated by a period of underemployment, but the judge found that the applicant had the means to pay taxes during his higher income years.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlWhile the applicant made some payments towards debts, the ongoing nature of his tax issues indicated a lack of control.
- AG ¶ 20(d)rejectedThe Person Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's efforts were insufficient to mitigate the serious concerns raised by his tax problems.
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 issuedMay 1, 2016
- Answer filedJun 25, 2016
- Hearing heldOct 21, 2016
- Decision dateJun 7, 2017
Cite for
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- The Impact of Ongoing Tax Issues on Security Clearance Eligibility
- The Burden of Proof on the Applicant to Demonstrate Suitability for Clearance Despite Financial Difficulties