Summary
A 48-year-old plant manager for a federal contractor was denied a security clearance due to financial considerations under Guideline F. The Statement of Reasons cited delinquent federal taxes for tax years 2007 through 2011, past-due home mortgage payments, and the failure to file a 2011 federal income tax return as of April 2013.
The applicant admitted to these financial issues. While some mitigating conditions were considered, the decision highlighted the applicant's irresponsible choice to default on mortgage payments as a tactic to pressure his estranged wife. This action was not viewed as demonstrating good faith toward creditors.
Ultimately, the applicant failed to provide evidence of a payment agreement with the IRS or documentation of payments made toward his outstanding debts. These factors led to the denial of his security clearance application.
Why the Applicant Was Denied
- The applicant admitted to owing delinquent federal taxes and having past-due mortgage payments.
- The applicant's decision to default on mortgage payments was deemed irresponsible and not in good faith toward creditors.
- The applicant failed to provide evidence of a payment agreement with the IRS or documentation of payments made toward 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)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's wife's actions contributed to the financial issues, the applicant's choice to default on payments was not responsible.
- AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or Indications That the Problem Is Being ResolvedThe applicant did not demonstrate that the financial issues were under control or resolved.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant did not provide evidence of payments or agreements with creditors.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedAug 12, 2013
- Answer filedSep 3, 2013
- Hearing heldJan 15, 2014Rescheduled from 12/12/2013 due to applicant's illness.
- Decision dateMar 26, 2014
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Impact of Marital Discord on Financial Obligations and Security Clearance Eligibility
- Consideration of Whole-person Factors in Security Clearance Decisions