Summary
A 54-year-old married software engineer was denied a security clearance under Guideline F, Financial Considerations, due to a history of significant and recurrent federal and state income tax delinquencies spanning from 1990 to 2008. The Statement of Reasons detailed several outstanding debts as of March 24, 2011, including approximately $37.00, $2,400.00, and $305.00 owed to medical providers.
The primary concerns involved substantial tax debts: approximately $36,000.00 owed to the IRS for tax years 1990, 1991, and 1993; approximately $25,000.00 owed to the IRS for tax years 2002 through 2007; and approximately $6,226.00 owed to the state for tax years 1992 and 1993. Additionally, two separate amounts of approximately $224.00 each were owed to the IRS for tax year 2008.
While the applicant had recently established payment plans for his tax debts, the judge determined these efforts were insufficient to mitigate the long-standing financial concerns. The decision noted that earlier tax delinquencies from the 1990s, though no longer collectible, were not addressed when the applicant's financial situation improved in the early 2000s. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant has a history of significant and recurrent tax delinquencies totaling approximately $25,000 owed to the IRS and $6,000 in state taxes.
- The applicant's previous tax delinquencies from the 1990s are no longer collectible, but he made no effort to resolve them when his financial situation improved in the early 2000s.
- The applicant's recent payment plans are insufficient to demonstrate that he has mitigated the financial concerns given the long-standing nature of his tax issues.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)appliedReceiving Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“"Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information."”
Procedural Posture
- SOR issuedNov 10, 2010
- Answer filedDec 30, 2010
- Hearing heldMar 24, 2011
- Decision dateJun 29, 2011
Cite For
- Recurrent Nature of Tax Delinquencies Under Guideline F
- Insufficient Mitigation of Financial Concerns Despite Recent Payment Plans
- Impact of Historical Financial Behavior on Current Security Clearance Eligibility