Summary
A federal contractor with a master's degree was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved tax debts and a history of financial irresponsibility. The applicant faced two unresolved federal tax liens: one from November 2007 for past-due taxes from 2005-2006, and a second from December 2011 for approximately $23,000 covering tax years 2007-2010. These tax debts totaled approximately $40,000.
In addition to tax issues, the applicant had non-tax related delinquent debts, including a $3,700 judgment, medical debts totaling approximately $500, and student loan collection accounts exceeding $150,000. While the applicant satisfied the judgment and medical debts, the substantial student loan accounts remained.
The denial was based on the applicant's consistent failure to pay federal taxes over a decade, with debts increasing from nearly $7,300 in 2007 to the current $40,000. Despite being employed with a good salary and receiving financial counseling, the applicant did not demonstrate reformed financial habits or a commitment to resolving the tax debts, as evidenced by the exclusion of IRS payments from their budget. This indicated ongoing financial irresponsibility, leading to concerns about reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has consistently failed to pay federal taxes over the past decade, with debts rising from nearly $7,300 in 2007 to approximately $40,000 today.
- The applicant did not demonstrate reformed financial habits or a commitment to resolving his tax debts despite being employed with a good salary.
- The applicant's financial counseling and budget did not include payments to the IRS, indicating ongoing financial irresponsibility.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One's Means
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant received financial counseling after the hearing.
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant satisfied or is paying some non-tax related debts.
Key Rule Quoted
“A security clearance represents an obligation to the Federal Government for the protection of national secrets.”
Procedural Posture
- SOR issuedOct 17, 2014
- Answer filed—
- Hearing heldJun 19, 2015Hearing was rescheduled twice to accommodate counsel.
- Decision dateNov 21, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Tax Debts Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Importance of Demonstrating Financial Reform in Security Clearance Cases