ISCR Case 09-06762.h1

Case Headnote

ISCR Case No. 09-06762.h1

grantedDec 15, 2010· Hon. Mary E. Henry· hearing

Summary

A 52-year-old human resources employee for a Department of Defense contractor was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant's financial issues primarily stemmed from a divorce, leading to significant tax debts with both federal and state governments. Specific allegations included a state tax debt of $5,885, for which he agreed to pay $265 monthly starting July 2010, and a third state tax lien recorded on January 18, 2007, for $4,389 related to the 2004 tax year. Additionally, his 2006 federal tax return showed an outstanding balance of $8,622, with an IRS payment plan requiring $300 monthly.

The applicant consistently filed tax returns and demonstrated a good-faith effort to resolve his financial obligations. He established payment plans for his state tax debts with collection agencies, agreeing to pay one creditor $100 monthly, and increased tax withholdings to prevent future issues. He also maintained timely payments on other debts, indicating his finances were under control.

The decision to grant the clearance was based on several mitigating factors. The applicant had a long, unblemished history of holding a security clearance. His financial difficulties were largely attributed to circumstances beyond his control, specifically his divorce. Crucially, he demonstrated a consistent and good-faith effort to repay his overdue creditors and actively resolve all outstanding debts.

Why the Applicant Prevailed

The applicant has a long history of holding a security clearance without incident.
He demonstrated a good-faith effort to repay overdue creditors and resolve debts.
The applicant's financial issues were largely due to circumstances beyond his control, specifically his divorce.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceived or Is Receiving Counseling for the Problem
AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedJun 4, 2010
Answer filedJul 8, 2010
Hearing heldSep 15, 2010
Decision dateDec 15, 2010

Cite For

Good-faith Efforts to Resolve Financial Issues Under Guideline F
Impact of Personal Circumstances on Financial Obligations
Consideration of the Whole-person Concept in Security Clearance Decisions

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The State tax debt in SOR ¶ 1.a is also held by a collection agency. His documentation reflects that he owes $5,885 on this debt. In July 2010, he agreed to pay this collection agency $265 a month until his debt was paid in full. $5,885	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.b	The state recorded a third tax lien on January 18, 2007 (SOR ¶ 1.b) in the amount of $4,389 against Applicant and his former wife for the tax year 2004. $4,389	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.c	Applicant has always filed his federal and state tax returns. His 2006 federal tax return reflects a taxable income of $62,000, taxes owed in the amount of $12,051, and taxes withheld from his paycheck in the amount of $3,429. For the tax year 2006, Applicant owed an additional $8,622 in federal taxes. $8,622	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.d	He still owes taxes to the federal and state governments. These two disqualifying conditions apply.	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.e	Applicant’s payment plan with the IRS required him to pay $300 a month on all his past-due taxes. His payment is being applied to the 2006 tax year until this debt is paid.	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.f	He has shown a good-faith effort to resolve his tax debts. He pays his other debts in a timely manner, and his finances are under control.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.g	He contacted the collection companies, which are the collection agent for the State, and has developed a payment plan for the remaining State tax debts.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.h	He agreed to pay the creditor $100 on this debt until the remaining balance is paid in full.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.i	He believes these changes in his tax withholdings will solve his tax issues in the coming years.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.j	He has not received any definitive information from this attorney about the status of this debt. He is willing to pay the debt if he owes it.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The State tax debt in SOR ¶ 1.a is also held by a collection agency. His documentation reflects that he owes $5,885 on this debt. In July 2010, he agreed to pay this collection agency $265 a month until his debt was paid in full.

$5,885

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Paid in Full

1.b

The state recorded a third tax lien on January 18, 2007 (SOR ¶ 1.b) in the amount of $4,389 against Applicant and his former wife for the tax year 2004.

$4,389

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Paid in Full

1.c

Applicant has always filed his federal and state tax returns. His 2006 federal tax return reflects a taxable income of $62,000, taxes owed in the amount of $12,051, and taxes withheld from his paycheck in the amount of $3,429. For the tax year 2006, Applicant owed an additional $8,622 in federal taxes.

$8,622

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Paid in Full

1.d

He still owes taxes to the federal and state governments. These two disqualifying conditions apply.

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Paid in Full

1.e

Applicant’s payment plan with the IRS required him to pay $300 a month on all his past-due taxes. His payment is being applied to the 2006 tax year until this debt is paid.

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Paid in Full

1.f

He has shown a good-faith effort to resolve his tax debts. He pays his other debts in a timely manner, and his finances are under control.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Paid in Full

1.g

He contacted the collection companies, which are the collection agent for the State, and has developed a payment plan for the remaining State tax debts.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Paid in Full

1.h

He agreed to pay the creditor $100 on this debt until the remaining balance is paid in full.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Paid in Full

1.i

He believes these changes in his tax withholdings will solve his tax issues in the coming years.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Paid in Full

1.j

He has not received any definitive information from this attorney about the status of this debt. He is willing to pay the debt if he owes it.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Paid in Full

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Case Profile

Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES