Summary
A 49-year-old defense contractor and former U.S. Air Force member was denied a security clearance under Guideline F, Financial Considerations, due to significant financial issues. The Statement of Reasons detailed multiple unpaid tax liens, including two state tax liens totaling over $30,000, two additional state tax liens exceeding $7,000, and a federal tax lien of almost $26,000. Additionally, the applicant failed to timely file federal and state tax returns for tax years 2000 through 2011.
The disqualifying conditions raised included AG ¶ 19(a) and AG ¶ 19(c). While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's failure to timely file tax returns for over a decade and the presence of multiple unpaid tax liens totaling over $63,000. The applicant did not provide adequate evidence of resolving these tax obligations or demonstrating a good-faith effort to repay creditors.
Why the Applicant Was Denied
- Applicant failed to timely file federal and state tax returns from 2000 to 2011.
- Applicant has multiple unpaid tax liens totaling over $63,000.
- Applicant did not provide evidence of resolution for the tax obligations or demonstrate a good-faith effort to repay creditors.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe financial difficulties are recent and ongoing.
- AG ¶ 20(b)rejectedConditions That Resulted in the Behavior Were Largely Beyond the Person's ControlApplicant did not provide evidence that the delinquencies were beyond his control.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant's documentation did not demonstrate any real filing or payments made towards the debts.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThere is no evidence of financial counseling.
Key Rule Quoted
“The clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
Procedural Posture
- SOR issuedMay 8, 2013
- Answer filedTimely
- Hearing heldN/AApplicant requested an administrative determination in lieu of a hearing.
- Decision dateSep 19, 2013
Cite For
- Failure to File Tax Returns as a Disqualifying Factor Under Guideline F
- Insufficient Evidence of Financial Mitigation Efforts
- The Importance of Timely Addressing Financial Obligations for Security Clearance Eligibility