Summary
A 45-year-old defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant failed to file federal tax returns from 2008 through 2011, owing approximately $18,000 for tax years 2008 and 2010 through 2012. Additionally, he did not file state income tax returns from 2003 through 2012, accumulating approximately $6,950 in unpaid state taxes.
The applicant also failed to fully disclose his federal tax obligations on his 2013 public trust questionnaire. While he successfully mitigated the personal conduct concerns related to these omissions, the financial issues remained unmitigated.
The denial was based on his failure to file multiple years of federal and state tax returns and the significant resulting tax debts. He had not established a formal payment plan for his state tax obligations and had only recently begun to address his federal tax issues, raising questions about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant failed to file federal and state tax returns for multiple years and owed significant back taxes.
- He did not establish a formal payment plan for his state tax obligations and only recently began addressing his federal tax issues.
- His failure to file taxes and the resulting debts raised questions about his reliability and trustworthiness.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.1.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- E.2.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's tax issues are recent and unresolved.
- E.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlNeglecting tax obligations to fund children's education is not beyond the applicant's control.
- E.2.crejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlNo evidence of financial counseling was presented.
- E.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsLack of evidence showing a good-faith effort to resolve state tax issues.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedApr 9, 2014
- Answer filedMay 5, 2014
- Hearing heldAug 13, 2014Rescheduled due to applicant's absence.
- Decision dateSep 19, 2014
Cite For
- Failure to Mitigate Financial Obligations Under Guideline F
- Deliberate Omission of Tax Obligations Under Guideline E
- Consideration of the Whole-person Concept in Security Clearance Decisions.