Summary
The applicant, a 52-year-old defense contractor, faced security clearance denial under Guideline F due to significant unresolved financial issues, including overdue debts to the IRS and multiple creditors. Despite personal hardships, including a divorce and family illness, the applicant's minimal efforts to address her debts were deemed insufficient to mitigate security concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This overdue debt to the Internal Revenue Service (IRS) for unpaid taxes for tax years 2010 through 2012 is cited in the SOR in the amount of $35,225 (1.a). This overdue debt is cited in the SOR for a collection account in the amount of $15,037 (1.b). This overdue debt is cited in the SOR for a collection account in the amount of $5,468 (1.c). This overdue debt is cited in the SOR for a charged off account in the amount of $9,544 (1.d). This overdue debt is cited in the SOR for a charged off account in the amount of $13,236 (1.e). Three overdue debts are cited in the SOR for three collection accounts to the same creditor for city parking in the amounts of $389, $121, and $475, for a total of $985 (1.f).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant has significant unresolved debts totaling over $75,000, including overdue taxes and collection accounts; The applicant's efforts to resolve her debts were minimal and only began after the issuance of the SOR; The applicant has not received any financial counseling, which is a factor against her.
Why the Applicant Was Denied
- The applicant has significant unresolved debts totaling over $75,000, including overdue taxes and collection accounts.
- The applicant's efforts to resolve her debts were minimal and only began after the issuance of the SOR.
- The applicant has not received any financial counseling, which is a factor against her.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedJun 5, 2013
- Answer filedJun 26, 2013
- Hearing heldOct 17, 2013Hearing was rescheduled from September 19, 2013.
- Decision dateJan 30, 2014
Cite For
- Insufficient Mitigation of Financial Difficulties Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Demonstrating Good-faith Efforts to Resolve Financial Obligations