Summary
A 59-year-old marine electrician was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The Statement of Reasons detailed the applicant's failure to file a state income tax return and pay $1,500 in state income taxes for tax year 2014. Additionally, the applicant had seven other delinquent debts totaling $8,352.
The decision cited several disqualifying conditions related to financial irresponsibility. While various mitigating conditions were considered, the applicant failed to provide evidence to resolve the outstanding tax obligation or the seven other delinquent debts. The applicant also did not respond to the Government's request for evidence to support mitigation efforts.
Ultimately, the judge denied the security clearance, concluding that the applicant's lack of evidence to mitigate the financial issues demonstrated a level of financial irresponsibility that undermined trustworthiness.
Why the Applicant Was Denied
- Applicant failed to file his 2014 state income tax return and pay state income taxes of $1,500.
- Applicant has seven other delinquent debts totaling $8,352, with no evidence provided to mitigate these debts.
- Applicant did not respond to the Government's request for evidence to support mitigation.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual's Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedJun 13, 2016
- Answer filedSep 21, 2016Requested decision on the record without a hearing.
- Hearing held—No hearing; decision made on the record.
- Decision dateAug 30, 2017
Cite For
- Failure to File Income Tax Returns as an Indicator of Financial Irresponsibility Under Guideline F
- Lack of Evidence to Mitigate Financial Issues Leading to Denial of Security Clearance
- Implications of Financial Distress on Trustworthiness and Reliability in Security Clearance Determinations.