Summary
The applicant, a 61-year-old federal contractor, faced issues under Guideline F due to $174,856 in unresolved delinquent debt, including significant unpaid federal and state taxes, and a willful failure to file tax returns from 2005 to 2009. The judge denied the security clearance, citing ongoing financial instability and lack of responsible financial management.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: You are indebted to a creditor for a judgment in the amount of $6,843 (1.a). You owe $123,000 in federal taxes (1.b). You are indebted to a creditor for a delinquent credit card account in the amount of $314 (1.c). You are indebted to a creditor for a delinquent credit card account in the amount of $6,843 (1.d). You are indebted to the Department of Education for a student loan in the amount of $20,631 (1.e). You owe $18,247 in unpaid state taxes (1.f). You have failed to file federal income tax returns, as required, for tax years 2005 through, at least 2009 (1.g). You have failed to file state income tax returns, as required, for tax years 2005 through, at least 2009 (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(g). The decision turned on the following: The applicant has $174,856 in unresolved delinquent debt, including $143,000 in unpaid federal obligations and $18,247 in unpaid state taxes; The applicant willfully failed to file federal and state income tax returns between 2005 and 2009; The applicant has not taken appreciable steps towards resolving his financial issues despite having a stable income since June 2010.
Why the Applicant Was Denied
- The applicant has $174,856 in unresolved delinquent debt, including $143,000 in unpaid federal obligations and $18,247 in unpaid state taxes.
- The applicant willfully failed to file federal and state income tax returns between 2005 and 2009.
- The applicant has not taken appreciable steps towards resolving his financial issues despite having a stable income since June 2010.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)appliedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedSep 15, 2011
- Answer filed—
- Hearing heldDec 15, 2011
- Decision dateFeb 13, 2012
Cite For
- Financial Instability as a Disqualifying Factor Under Guideline F
- Willful Failure to File Tax Returns as a Significant Concern
- Lack of Responsible Financial Management Impacting Security Clearance Eligibility