Summary
A 50-year-old attorney was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged that the applicant had a federal tax lien filed against him in December 2008 for $27,911, which grew to $38,135 for tax year 2006 by February 2012. He resolved this by paying off the 2006 tax lien with a $39,000 check on February 21, 2012. Additionally, the applicant admitted to failing to file federal and state tax returns for 2008, 2009, and 2010.
The judge found that the applicant's financial problems were largely beyond his control, stemming from a divorce and accountant negligence. He demonstrated responsible financial behavior by paying off the 2006 tax lien and filing all overdue tax returns in 2012, thereby resolving the allegations in the SOR.
The applicant made substantial payments to both the IRS and state tax authority, showing good faith efforts to resolve his debts. Given these mitigating factors and the resolution of the financial issues, the security clearance was GRANTED.
Why the Applicant Prevailed
- Applicant paid off the 2006 tax lien and filed all overdue tax returns in 2012, resolving the allegations in the SOR.
- The applicant's financial issues were primarily due to circumstances beyond his control, including a divorce and accountant negligence.
- He made substantial payments to the IRS and state tax authority, demonstrating good faith efforts to resolve his debts.
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)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived or Is Receiving Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedMar 21, 2012
- Answer filedMay 2, 2012
- Hearing heldSep 6, 2012
- Decision dateDec 28, 2012
Cite For
- Mitigation of Financial Issues Under Guideline F
- Good Faith Efforts to Resolve Tax Debts
- Impact of External Circumstances on Financial Responsibility