Summary
A 57-year-old engineer was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The applicant faced federal tax liens totaling approximately $17,652 for tax years 1989, 1990, and 1991, with a lien filed in March 1997. Additionally, he had state tax liens amounting to nearly $20,000 for tax years 1984, 1987, 1988, 1989, 1990, 1995, 1996, 1997, 1998, and 1999, with four liens filed in 1993, 2001, and 2004.
The applicant had not paid, settled, or resolved these tax liens and had not filed income tax returns since 1991. While an additional $8,717 collection account from 2004, incurred after vacating an apartment due to his wife's post-traumatic stress disorder, was noted, it was determined not to present an undue security concern either alone or in combination with the tax issues.
Despite the applicant's claims disputing the validity of the tax liens, these were not supported by reliable evidence. The judge found that the applicant failed to demonstrate a good-faith effort to resolve the outstanding tax debts, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant has multiple state and federal tax liens totaling over $37,000 that remain unpaid.
- He has not filed income tax returns since 1991 and has not made a good-faith effort to resolve his tax issues.
- The applicant's claims regarding the invalidity of the tax liens were not supported by reliable evidence.
Conditions Referenced
- F.1.aappliedInability to Satisfy Debts
- F.1.cappliedFinancial Irresponsibility
- F.2.arejectedBehavior Occurred Long Ago or Under Circumstances Unlikely to RecurThe tax issues are ongoing and within the applicant's control.
- F.2.brejectedConditions Largely Beyond the Person's ControlThe applicant's financial problems stem from his own actions.
- F.2.drejectedGood-faith Effort to Repay CreditorsThe applicant has not made any effort to resolve his tax debts.
- F.2.erejectedReasonable Basis to Dispute the Legitimacy of the DebtThe applicant did not provide reliable evidence to dispute the tax liens.
Key Rule Quoted
“The clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
Procedural Posture
- SOR issuedAug 19, 2009
- Answer filedNot specified
- Hearing heldFeb 3, 2010
- Decision dateFeb 24, 2010
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Demonstrate Good-faith Effort to Resolve Debts
- Ongoing Tax Issues Indicating Poor Judgment and Reliability