Summary
A 38-year-old male applicant seeking a public trust position was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from a history of financial delinquencies, including a failure to file federal and state income tax returns for the years 2003 through 2006. Additionally, the applicant had approximately $8,775 in delinquent debts across multiple accounts.
The Statement of Reasons detailed these issues, specifically citing the unfiled tax returns and various delinquent debts, including one for $21. The judge applied several disqualifying conditions related to financial irresponsibility. While mitigating conditions were considered, the judge ultimately found that the applicant failed to resolve his financial issues.
The denial was based on the applicant's failure to file the specified tax returns, his admission to 13 of 15 allegations of delinquent debt totaling approximately $8,775, and his inability to provide documentation of payment or payment plans for these admitted debts, even after securing stable employment.
Why the Applicant Was Denied
- The applicant failed to file Federal and state income tax returns for tax years 2003 through 2006.
- The applicant admitted to 13 of 15 allegations of delinquent debt totaling approximately $8,775.
- The applicant did not provide documentation to show he had paid or had payment plans for his admitted debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial delinquencies began in at least 2000 and have continued to the present.
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's illness impacted his ability to pay debts, but he failed to act responsibly after regaining health.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemNo evidence that the applicant received financial counseling or took action to resolve debts.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate good-faith efforts to resolve his delinquent debts.
Key Rule Quoted
“A person who seeks access to sensitive information enters into a fiduciary relationship with the government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJul 27, 2009
- Answer filedSep 17, 2009
- Hearing heldJun 1, 2010Requested determination on the record in lieu of a hearing.
- Decision dateDec 21, 2010
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Lack of Action to Resolve Financial Delinquencies as a Basis for Denial
- The Importance of Demonstrating Good-faith Efforts to Address Financial Issues in Security Clearance Cases.