Summary
A Department of Defense contractor, with a high school diploma and prior military service, was denied a security clearance under Guideline F (Financial Considerations). The denial stemmed from significant unresolved federal income tax debts totaling $51,824, accumulated between 2011 and 2014.
Specifically, the applicant failed to file federal tax returns for 2013 and 2014 until February 2016, incurring a debt of $12,631 for 2013. Additionally, returns for 2011 and 2012 were not filed until July 2013, resulting in outstanding debts of $19,652 for 2012 and $19,541 for 2011.
The denial was based on the applicant's pattern of financial irresponsibility, including the failure to file tax returns for multiple years and the unresolved nature of the tax debts. The judge found insufficient evidence of an active payment agreement with the IRS or responsible financial management, leading to concerns about the applicant's reliability and judgment.
Why the Applicant Was Denied
- The applicant failed to file federal income tax returns for multiple years, demonstrating a pattern of financial irresponsibility.
- The applicant's tax debts remained unresolved, raising concerns about his reliability and judgment.
- The applicant did not provide sufficient evidence of an active payment agreement with the IRS or his financial situation.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Tax Returns
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant experienced unemployment, his neglect of tax obligations was not excusable.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant's proposed payment plan was not confirmed as active or effective.
- AG ¶ 20(g)rejectedArrangements with Tax AuthorityThe applicant was in the process of making arrangements, but no evidence of compliance was provided.
Key Rule Quoted
“A person who fails repeatedly to fulfill his or her legal obligations does not demonstrate the high degree of good judgment and reliability required of those granted access to classified information.”
Procedural Posture
- SOR issuedMay 23, 2016
- Answer filedJun 1, 2016Requested decision on the record.
- Hearing held—
- Decision dateJun 30, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Tax Debts Under Guideline F
- Importance of Timely Filing Tax Returns for Security Clearance Eligibility
- Insufficient Evidence of Financial Responsibility as a Basis for Clearance Denial