Summary
A 60-year-old defense contractor employee was initially denied a security clearance under Guideline F (Financial Considerations) due to concerns about his financial history. The Statement of Reasons cited his failure to file federal income tax returns for the years 2004 through 2006, as well as approximately 17 delinquent debts totaling $38,614. Additionally, he owed a single debt of $27,762 to the Internal Revenue Service (IRS). These issues raised disqualifying conditions under Adjudicative Guidelines paragraphs 19(a), 19(c), and 19(g).
However, the applicant successfully demonstrated significant mitigation. He filed all past-due tax returns and maintained current filings thereafter. He also resolved most of his delinquent debts, with others being disputed as not his responsibility. Furthermore, he established that his current finances were sound, exhibiting a positive cash flow.
Based on these mitigating actions, which aligned with Adjudicative Guidelines paragraphs 20(a), 20(b), 20(d), and 20(e), the security clearance was GRANTED.
Why the Applicant Prevailed
- Applicant filed all past-due tax returns and is current on subsequent filings.
- Most debts were resolved or disputed as not his responsibility.
- Current finances are sound with a positive cash flow.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual's Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
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 24, 2010
- Answer filed—
- Hearing heldSep 20, 2011
- Decision dateDec 14, 2011
Cite For
- Resolution of Financial Issues Under Guideline F
- Mitigating Conditions Related to Financial Responsibility
- Impact of Past Financial Difficulties on Current Reliability