Summary
A 53-year-old electrical technician was denied a security clearance under Guideline F, Financial Considerations, due to significant and unresolved financial issues. The Statement of Reasons detailed his failure to file federal tax returns from 2001 to 2006 and state tax returns from 1992 to 2006.
Further allegations included an IRS tax lien from August 2001 for $8,874, and two state tax liens from May and September 2006 for $4,303 and $4,845, respectively. The applicant also had an unsatisfied judgment from May 2000 for $892 and five delinquent debts totaling over $3,900 that remained unpaid.
Despite some efforts to address these problems, the applicant failed to provide sufficient documentation of progress toward resolving his financial obligations. The denial was based on his failure to file tax returns, the accumulation of significant unresolved tax liens and debts, and the lack of tangible evidence demonstrating efforts to mitigate these financial concerns.
Why the applicant was denied
- The applicant failed to file federal and state tax returns for multiple years.
- The applicant accumulated significant tax liens and outstanding debts without resolution.
- The applicant did not provide sufficient documentation of efforts to resolve his financial issues.
Conditions referenced
- DC ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- DC ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- DC ¶ 19(g)appliedFailure to File Annual Federal, State, and Local Income Tax Returns as Required
- MC ¶ 20(c)appliedThe 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 Control
- MC ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant failed to document any repayment efforts with creditors.
- MC ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem and Provides Documented Proof to Substantiate the Basis of the DisputeThe applicant did not provide sufficient documentation to support disputes over 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 issuedOct 3, 2008
- Answer filedOct 28, 2008
- Hearing heldDec 15, 2008
- Decision dateFeb 20, 2009
Cite for
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Insufficient Evidence of Financial Responsibility Leading to Denial of Security Clearance
- The Importance of Demonstrating Tangible Progress in Resolving Financial Issues for Security Clearance Eligibility.