Summary
A 71-year-old federal contractor and former Marine was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from a history of failing to file tax returns and unresolved tax debts, which raised concerns about his reliability and trustworthiness.
Specifically, the applicant failed to timely file state and federal income tax returns from approximately 1997 to 2007. Additionally, he owed federal income taxes of $16,378 for tax year 2012 and $3,668 for tax year 2011, along with approximately $1,729 in state income taxes and a $31 medical debt. These issues were attributed to procrastination.
Despite some mitigating conditions being applied, the clearance was denied because the applicant did not demonstrate a good-faith effort to resolve his debts or seek financial counseling. The judge concluded that the applicant's procrastination and lack of timely resolution of financial obligations were significant concerns.
Why the Applicant Was Denied
- The applicant failed to timely file state and federal income tax returns from 1997 to 2007 due to procrastination.
- He has unresolved federal and state tax debts, including a state tax lien and a medical debt.
- The applicant did not demonstrate a good-faith effort to resolve his debts or seek financial counseling.
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 ¶ 16(c)raisedCredible Adverse Information in Several Adjudicative Issue Areas
- AG ¶ 16(d)raisedCredible Adverse Information That Is Not Explicitly Covered Under Any Other Guideline
- AG ¶ 16(e)raisedPersonal Conduct That Creates a Vulnerability to Exploitation
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant has not sought or received counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant's payments do not demonstrate good faith due to unresolved debts.
- AG ¶ 17(d)appliedThe Individual Has Acknowledged the Behavior and Obtained CounselingThe applicant acknowledged his behavior but did not provide evidence of positive steps to prevent recurrence.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedDec 12, 2013
- Answer filedJan 22, 2014Requested decision on the record without a hearing.
- Hearing held—No hearing; decision made on the record.
- Decision dateMay 13, 2014
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Procrastination in Financial Obligations as a Reliability Concern