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Summary

The applicant, a 60-year-old with multiple degrees, faced security clearance denial under Guideline F due to unresolved financial issues, including significant tax debts and a history of not meeting financial obligations. Despite some efforts to address her debts, the judge found that her financial irresponsibility and failure to timely file tax returns raised concerns about her reliability and trustworthiness.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a ($215) is a medical debt. She paid the debt in June 2015 (1.a). SOR ¶ 1.b ($45) is a communication company debt. Applicant indicated she converted her service and believed the balance rolled over to the new service. She paid the debt in June 2015 (1.b). SOR ¶ 1.c ($85) is a medical debt Applicant believed was covered by her health insurance. She paid the debt in June 2015 (1.c). SOR ¶ 1.d ($9,789) is a car loan that Applicant cosigned for her daughter in 2009. Her daughter made the car payments until she lost her job. Applicant made payments for six months then stopped. She indicated she made some period payments later. Her daughter continued to drive the car until it was repossessed in 2012. Applicant negotiated a settlement agreement with the creditor on September 12, 2015, and agreed to pay $3,034. She made her first payment of $505 on September 24, 2015 (1.d). SOR ¶ 1.e ($419) is a medical debt. She received the bill, but did not pay it as required. She paid the debt in August 2015 (1.e). SOR ¶ 1.f ($28) is a medical debt. She stated she should have addressed this debt years ago. She paid the debt in September 2015 (1.f). SOR ¶ 1.g ($82) is a medical debt. Applicant indicated it was paid years ago. She provided a document showing a zero balance on the account (1.g). SOR ¶ 1.h ($59) is a communication company debt. Applicant believed the account balance rolled over to the new service. She indicated she paid the account. Her documents show a payment for $59 was pending. They also show that her new balance with interest and fees was $88 (1.h). SOR ¶ 1.i ($415) is a medical bill for Applicant’s daughter when she was a minor. Applicant received the bills, but assumed her daughter was responsible for them. She did not inquire about the bill when she received it. She stated it is likely eight years old. She paid it in June 2015 (1.i). SOR ¶¶ 1.j and 1.k ($172) are duplicate medical debts. Applicant indicated that she likely received the bill, but when she contacted the collection creditor, it did not have a record of a debt owed. Applicant could not find the original creditor (1.j). SOR ¶ 1.l ($1,044) is a medical debt that Applicant disputed regarding the proper medical code. She indicated the insurance company paid the debt and she paid the required copay (1.l). SOR ¶¶ 1.m ($232) and 1.n ($67) are medical debts. Applicant contacted the collection company and was advised she did not have outstanding debts. She indicated she was unable to determine the original creditor (1.m). SOR ¶ 1.o ($65,000) are the IRS debts discussed above (1.o). SOR ¶ 1.p ($25,000) are the IRS debts discussed above (1.p). You failed to timely file 2005, 2006, 2007, 2008, and 2009 federal income tax returns as required (1.q).

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), AG ¶ 20(e). The decision turned on the following: Applicant had 15 delinquent debts, including significant tax liabilities; Failed to timely file federal income tax returns for multiple years, raising concerns about financial responsibility; Inaction in addressing tax debts and other financial obligations cast doubt on her current reliability and judgment.

Why the Applicant Was Denied

• Applicant had 15 delinquent debts, including significant tax liabilities.
• Failed to timely file federal income tax returns for multiple years, raising concerns about financial responsibility.
• Inaction in addressing tax debts and other financial obligations cast doubt on her current reliability and judgment.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedMay 21, 2015
• Answer filedJun 22, 2015
• Hearing heldSep 16, 2015
• Decision dateOct 8, 2015

Cite For

• Denial of Security Clearance Due to Unresolved Tax Debts Under Guideline F
• Failure to Timely File Tax Returns as a Disqualifying Condition
• Consideration of Financial Irresponsibility in Security Clearance Evaluations