ISCR Case 10-00804.h1

Case Headnote

ISCR Case No. 10-00804.h1

grantedNov 28, 2011· Hon. John Grattan Metz, Jr.· hearing

Summary

A 34-year-old intern, employed by the U.S. mission to an international treaty organization since June 2009, was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant previously held a clearance in 2008 while working for a joint state/federal drug task force.

The primary concern involved two IRS tax liens totaling over $64,000, entered against the applicant and her husband for tax years 2007 and 2008. A nearly $49,000 lien was entered in July 2009, and a nearly $16,000 lien in October 2010. The applicant admitted to the October 2010 lien and demonstrated that she entered a repayment agreement with the IRS in March 2011, making the initial six payments. This action made her eligible for the lien's withdrawal under IRS policy. Furthermore, the July 2009 lien was released in April 2011.

The clearance was granted because the applicant demonstrated responsible actions, including consistent payments on her repayment agreement. Her financial difficulties were largely attributed to circumstances beyond her control, specifically the real estate market collapse. The applicant showed a good-faith effort to resolve her delinquent debts and maintained a positive monthly cash flow.

Why the Applicant Prevailed

The applicant reached a repayment agreement with the IRS and made consistent payments.
The applicant's financial difficulties were largely due to circumstances beyond her control, specifically the real estate market collapse.
The applicant demonstrated a good-faith effort to address her delinquent debts and has positive monthly cash flow.

Conditions Referenced

Disqualifying

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

Mitigating

F.20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
F.20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debt

Key Rule Quoted

“The Government must prove, by substantial evidence, disputed facts alleged in the SOR.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedMay 2, 2011
Answer filed—Timely response requested a hearing.
Hearing heldNov 2, 2011Conducted via video teleconference.
Decision dateNov 28, 2011

Cite For

Mitigating Factors Under Guideline F for Financial Considerations
Good-faith Efforts to Resolve Tax Liabilities
Impact of External Circumstances on Financial Obligations

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	Applicant admitted the financial allegations in SOR 1.a; she denied the allegations in SOR 1.b. She is a 34-year-old intern employed by the U.S. mission to an international treaty organization since June 2009. She held a security clearance in February 2008, while employed by a joint state/federal drug task force. She left this job in September 2008 to attend graduate school overseas, where she obtained the internship that requires her clearance. The SOR alleges, and Government exhibits substantiate, two Internal Revenue Service (IRS) tax liens totaling over $64,000: a nearly $16,000 lien entered against Applicant and her husband in October 2010 and a nearly $49,000 lien entered against Applicant and her husband in July 2009. The liens were for tax years 2008 and 2007, respectively. Applicant admits the October 2010 tax lien, and documents that she reached a repayment agreement with the IRS in March 2011 and has made the first six payments (Answer; AE G, H), making her eligible to have the lien withdrawn under IRS policy (AE K). She also documents that the July 2009 lien was released in April 2011 (Answer; AE E, F). $16,000	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	Documented Debt Paid in Full Documented Debt Settlement Claimed Other
1.b	specific text not stated in this decision $49,000	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted the financial allegations in SOR 1.a; she denied the allegations in SOR 1.b. She is a 34-year-old intern employed by the U.S. mission to an international treaty organization since June 2009. She held a security clearance in February 2008, while employed by a joint state/federal drug task force. She left this job in September 2008 to attend graduate school overseas, where she obtained the internship that requires her clearance. The SOR alleges, and Government exhibits substantiate, two Internal Revenue Service (IRS) tax liens totaling over $64,000: a nearly $16,000 lien entered against Applicant and her husband in October 2010 and a nearly $49,000 lien entered against Applicant and her husband in July 2009. The liens were for tax years 2008 and 2007, respectively. Applicant admits the October 2010 tax lien, and documents that she reached a repayment agreement with the IRS in March 2011 and has made the first six payments (Answer; AE G, H), making her eligible to have the lien withdrawn under IRS policy (AE K). She also documents that the July 2009 lien was released in April 2011 (Answer; AE E, F).

$16,000

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

Documented

Debt Paid in Full

Documented

Debt Settlement

Claimed

Other

1.b

specific text not stated in this decision

$49,000

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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

FORMAL FINDINGS

CONCLUSION

FOOTNOTES