Summary
A 37-year-old unmarried Software Engineer and Air Force Reservist was granted a security clearance despite allegations under Guideline F (Financial Considerations). The applicant faced concerns regarding significant tax debts, specifically owing over $100,000 to the IRS for tax years 2007-2011 and $16,212 to a state franchise tax board for tax years 2008-2011. Additionally, the applicant failed to file federal and state income tax returns for 2007 and 2008.
Disqualifying conditions 19.(a) and 19.(c) were raised, but mitigating conditions 20.(c) and 20.(d) were applied. The applicant demonstrated a good-faith effort to resolve these financial issues, including hiring an accountant and establishing a payment plan with the IRS. Substantial payments were made, including $56,376.79 to the IRS and $10,000 to the state, and an installment agreement with the IRS was established and committed to.
The decision to grant the clearance was supported by positive character references from supervisors and military colleagues, who attested to the applicant's reliability and trustworthiness. The judge concluded that the applicant's financial issues were being addressed, emphasizing the applicant's overall reliability and trustworthiness.
Why the Applicant Prevailed
- The applicant made substantial payments toward resolving his tax debts, including a $56,376.79 payment to the IRS and a $10,000 payment to the state.
- The applicant established an installment agreement with the IRS and demonstrated a commitment to honor it.
- The applicant received positive character references from supervisors and military colleagues, attesting to his reliability and trustworthiness.
Conditions Referenced
- 19.(a)raisedInability or Unwillingness to Satisfy Debts
- 19.(c)raisedA History of Not Meeting Financial Obligations
- 20.(c)appliedThe 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
- 20.(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedApr 12, 2013
- Answer filedMay 9, 2013
- Hearing heldAug 8, 2013
- Decision dateSep 24, 2013
Cite For
- Good-faith Efforts to Resolve Financial Obligations Under Guideline F
- Evidence of Financial Rehabilitation and Responsible Behavior
- Importance of Character References in Security Clearance Determinations