Summary
The applicant, a 51-year-old IT Specialist with a history of financial difficulties, faced security clearance denial under Guideline F due to significant overdue debts and failure to file timely Federal tax returns. Despite some payments made in the past, the applicant failed to demonstrate a responsible effort to resolve his substantial tax debts, leading to the conclusion that he posed a risk to national security.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The SOR alleges that Applicant failed to file his Federal tax return for tax year 2012 until about March 2014, and he is indebted to the Federal Government for delinquent taxes for this tax year in the amount of $10,901.99 (1.a). The SOR alleges that Applicant failed to file his Federal tax return for tax year 2011 until about March 2014, and he is indebted to the Federal Government for delinquent taxes for this tax year in the amount of $12,396.13 (1.b). The SOR alleges that Applicant failed to file his Federal tax return for tax year 2010 until about May 2012, and he is indebted to the Federal Government for delinquent taxes for this tax year in the amount of $5,810.03 (1.c). The SOR alleges that Applicant failed to file his Federal tax return for tax year 2009 until about May 2012, and he is indebted to the Federal Government for delinquent taxes for this tax year in the amount of $12,730.67 (1.d). The SOR alleges that Applicant failed to file his Federal tax return for tax year 2008 until about December 2009, and he is indebted to the Federal Government for delinquent taxes for this tax year in the amount of $5,092.76 (1.e). The SOR alleges that Applicant failed to file his Federal tax return for tax year 2007 until about December 2009, and he is indebted to the Federal Government for delinquent taxes for this tax year in the amount of $13,445.11 (1.f). The SOR alleges that a judgment was entered against Applicant in 2008 in the approximate amount of $5,606, and, as of the date of the SOR, the judgment remains unpaid (1.g). The SOR alleges that a judgment was entered against Applicant in 2009 in the approximate amount of $8,524, and as of the date of the SOR, the judgment remains unpaid (1.h). The SOR alleges that Applicant is indebted for a collection account in the approximate amount of $48, and as of the date of the SOR, the debt remains unpaid (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(g). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant accumulated significant delinquent debt, especially to the Federal Government, which has not been satisfied; The applicant failed to file timely Federal tax returns for several years, from 2007 through 2012; The applicant did not demonstrate a good-faith effort to repay overdue creditors or resolve debts.
Why the Applicant Was Denied
- The applicant accumulated significant delinquent debt, especially to the Federal Government, which has not been satisfied.
- The applicant failed to file timely Federal tax returns for several years, from 2007 through 2012.
- The applicant did not demonstrate a good-faith effort to repay overdue creditors or resolve debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 19(g)appliedFailure to File Federal, State or Local Income Tax Returns as Required
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant failed to explain how his marital problems prevented timely tax filings.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant has not made payments since 2012 and lacks a settlement agreement with the IRS.
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 issuedJul 10, 2014
- Answer filedUndatedApplicant requested decision on written record.
- Hearing heldN/ADecided on written record.
- Decision dateJun 24, 2015
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility Under the Whole-person Concept