Summary
A 44-year-old defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct). The applicant had approximately $13,000 in delinquent debt, including unpaid federal taxes from 1993 and 1994, and a $506 delinquent cell phone account. Additionally, the applicant owed the IRS approximately $3,115.77 on a 2004 tax lien.
The applicant failed to file federal tax returns for 1993 and 1994, which raised disqualifying conditions under criminal conduct. While the applicant provided detailed information about a tax lien on his security application, his error in checking the wrong box was deemed credible and not an intentional falsification.
Despite recent payments made to the IRS, these actions were insufficient to mitigate the earlier financial irresponsibility and criminal conduct concerns. Consequently, the applicant's security clearance was denied.
Why the Applicant Was Denied
- Applicant incurred approximately $13,000 in delinquent debt, including unpaid federal taxes from 1993 and 1994.
- Applicant failed to file federal tax returns for two years, which constituted a disqualification under criminal conduct.
- Recent payments to the IRS did not mitigate earlier financial irresponsibility.
Conditions Referenced
- FC DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)raisedA History of Not Meeting Financial Obligations
- FC DC 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- CC DC AG ¶ 31(a)raisedA Single Serious Crime or Multiple Lesser Offenses
- FC MC 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- FC MC 20(b)rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- FC MC 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem
- FC MC 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
- FC MC 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is eligible for a security clearance.”
Procedural Posture
- SOR issuedMar 29, 2007
- Answer filedMay 3, 2007
- Hearing heldJun 13, 2007Applicant elected to have his case decided at a hearing.
- Decision dateJul 11, 2007
Cite For
- Failure to Mitigate Financial Obligations Under Guideline F
- Disqualification Due to Failure to File Federal Tax Returns Under Guideline J
- Mitigating Conditions Not Applicable Due to Lack of Credible Evidence of Changed Circumstances