Summary
The applicant, a 58-year-old defense contractor, faced security concerns under Guideline F due to significant financial issues, including failure to file tax returns and multiple delinquent debts. The judge found that the applicant did not mitigate these concerns, leading to a denial of security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is indebted on a collections account for the approximate amount of $107 (1.a). Applicant is indebted on a collections account for the approximate amount of $156 (1.b). Applicant is indebted on a past due account for the approximate amount of $765 (1.c). Applicant is indebted on credit card account for the approximate amount of $2,501 (1.d). Applicant is indebted on a collections account for the approximate amount of $1,392 (1.e). Applicant is indebted to a telephone company for the approximate amount of $184 (1.f). Applicant is indebted on Federal tax debt for the approximate amount of $13,435 (1.g). Applicant failed to file his Federal Income Tax return for the tax year 2005 (1.h). Applicant failed to file his state income tax return for the tax year 2005 (1.i). Applicant failed to file his Federal Income Tax return for the tax year 2006 (1.j). Applicant failed to file his state income tax return for the tax year 2006 (1.k). Applicant failed to file his Federal Income Tax return for the tax year 2007 (1.l). Applicant failed to file his state income tax return for the tax year 2007 (1.m). Applicant failed to file his Federal Income Tax return for the tax year 2008 (1.n). Applicant failed to file his state income tax return for the tax year 2008 (1.o). Applicant failed to file his Federal Income Tax return for the tax year 2009 (1.p). Applicant failed to file his state income tax return for the tax year 2009 (1.q).
The judge denied the clearance. The government raised disqualifying conditions F.19(a), F.19(c), F.19(g). The judge applied mitigating conditions F.20(a), F.20(b), F.20(c), F.20(d), F.20(e). The decision turned on the following: The applicant failed to file Federal and state income tax returns for tax years 2005-2009; The applicant has a history of financial irresponsibility dating back to 1994; The applicant did not provide evidence of good-faith efforts to resolve his outstanding debts.
Why the Applicant Was Denied
- The applicant failed to file Federal and state income tax returns for tax years 2005-2009.
- The applicant has a history of financial irresponsibility dating back to 1994.
- The applicant did not provide evidence of good-faith efforts to resolve his outstanding debts.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns
- F.20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial difficulties have been ongoing for several years.
- F.20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant's financial issues stemmed from poor financial decisions.
- F.20(c)rejectedReceived Counseling for the Problem And/or Indications That the Problem Is Being ResolvedThe applicant presented no evidence of financial counseling.
- F.20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant failed to show he has acted in good faith to resolve his debts.
- F.20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not contest his outstanding debts.
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 issuedJan 11, 2010
- Answer filedFeb 3, 2010
- Hearing heldJul 26, 2010Hearing was rescheduled from June 28, 2010.
- Decision dateAug 27, 2010
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Ongoing Financial Irresponsibility as a Basis for Denial of Security Clearance
- Lack of Evidence of Good-faith Efforts to Resolve Debts as a Factor in Security Clearance Decisions