Summary
A 50-year-old real estate broker was granted a security clearance despite initial concerns under Guideline F, Financial Considerations. The applicant was indebted to the Internal Revenue Service (IRS) for approximately $71,979 in back taxes, which raised disqualifying conditions F.1.a and F.1.c.
However, several mitigating conditions were applied, including F.2.a, F.2.b, F.2.c, F.2.d, and F.2.e. The applicant demonstrated significant efforts to resolve the tax liability, making payments totaling over $208,202. The financial issues were largely attributed to circumstances beyond his control, specifically embezzlement by a business partner.
Ultimately, the applicant's consistent and responsible approach to his financial obligations, coupled with substantial payments and ongoing communication with the IRS, demonstrated reliability and trustworthiness. As a result, his security clearance was granted.
Why the Applicant Prevailed
- The applicant took significant steps to resolve his tax liability, including payments totaling over $208,202.
- The applicant's financial issues were largely due to circumstances beyond his control, specifically embezzlement by a business partner.
- The applicant maintained a credible and responsible approach to his financial obligations, demonstrating reliability and trustworthiness.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.2.cappliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- F.2.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past Due DebtThe applicant did not provide evidence disputing the underlying tax liability.
Key Rule Quoted
“A security clearance adjudication is not a debt collection procedure. It is a procedure designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”
Procedural Posture
- SOR issuedOct 14, 2011
- Answer filedNov 15, 2011Applicant initially declined a hearing.
- Hearing heldFeb 14, 2012
- Decision dateMay 3, 2012
Cite For
- Mitigation of Financial Issues Due to Circumstances Beyond Control
- Good-faith Efforts to Resolve Tax Liabilities
- Evaluation of Reliability and Trustworthiness in Security Clearance Decisions