Summary
A 26-year-old welder was denied a security clearance under Guideline F (Financial Considerations) due to numerous delinquent debts and a failure to file federal and state income tax returns for several years. The applicant faced allegations including two unsatisfied judgments from August 2012 for $799 and $314, a $7,335 deficiency from an auto repossession in December 2011, and various delinquent collection accounts. These included a credit card account from November 2007 for $1,387, a credit union loan from June 2008 for $5,803, and multiple other credit union, electric, cell phone, and medical debts ranging from $25 to $1,707, with collection referrals between 2007 and 2014. Additionally, a $1,206 collection account with last activity in August 2008 was noted.
A significant concern was the applicant's failure to file federal and state income tax returns for tax years 2009 through 2012. While the applicant was employed and expressed an intent to resolve his financial issues, the judge found insufficient evidence of meaningful steps taken to mitigate these concerns.
The decision to deny the clearance was based on the applicant's numerous delinquent debts, totaling approximately $23,158, the failure to file required tax returns for multiple years, and the lack of sufficient evidence demonstrating efforts to resolve these financial issues.
Why the Applicant Was Denied
- The applicant has numerous delinquent debts totaling about $23,158.
- The applicant failed to file federal and state income tax returns for multiple years.
- The applicant did not provide sufficient evidence of efforts to resolve his financial issues.
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
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's delinquent debts are numerous and ongoing.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant did not act responsibly to resolve debts attributable to his mother.
- AG ¶ 20(c)rejectedReceived or Is Receiving CounselingNo evidence was presented to show the applicant sought assistance.
- AG ¶ 20(d)notedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)notedReasonable Basis to Dispute Legitimacy of Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedMay 29, 2014
- Answer filedJun 19, 2014
- Hearing heldSep 10, 2014
- Decision dateNov 6, 2014
Cite For
- Denial Based on Financial Irresponsibility Under Guideline F
- Failure to File Tax Returns as a Disqualifying Condition
- Lack of Meaningful Action to Resolve Debts as a Basis for Denial