Summary
A 55-year-old former federal employee and real estate agent was denied a security clearance under Guideline F, Financial Considerations, due to significant and unresolved financial issues. The Statement of Reasons cited multiple delinquent debts and a failure to file federal income tax returns for the years 2001, 2002, 2003, 2004, and 2005.
Specific allegations included an unpaid federal tax debt exceeding $61,000, which continued to accrue interest and penalties. Other delinquent debts included a $786 debt from approximately 2007, an $845 debt for a direct buying service membership, a $178 medical services debt, and a $299 debt incurred in September 2006 for two flat-screen televisions.
Despite the application of some mitigating conditions, the judge found insufficient evidence of responsible financial management or a good-faith effort to resolve the outstanding obligations. The applicant's failure to address the delinquent federal taxes and other debts led to the denial of the security clearance.
Why the Applicant Was Denied
- Applicant failed to file federal income tax returns for 2001-2005, which raised security concerns.
- Delinquent federal tax debt of over $61,000 remains unpaid, with interest and penalties accruing.
- Applicant did not demonstrate a good-faith effort to resolve her financial obligations.
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(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant experienced significant medical issues and a downturn in the real estate market.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemWhile applicant stated she received financial counseling, there were no clear indications that the financial problems were being resolved.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant did not make substantial payments towards her debts or demonstrate progress in resolving her tax obligations.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedFeb 20, 2009
- Answer filedMar 24, 2009
- Hearing heldFeb 16, 2010Applicant waived her right to 15 days notice.
- Decision dateMar 30, 2010
Cite For
- Failure to File Federal Income Tax Returns as a Disqualifying Condition Under Guideline F
- Insufficient Evidence of Financial Responsibility Leading to Denial of Security Clearance
- Impact of Personal Circumstances on Financial Obligations and Their Consideration in Security Clearance Decisions.