Summary
A 55-year-old technical trainer with military service was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons cited his failure to file federal tax returns for six consecutive years (2007-2012) and state tax returns for nine consecutive years (2004-2012). Additionally, he had an unpaid judgment for $1,178 from 2009 and a $2,686 collection account.
Disqualifying conditions 19(a), 19(c), and 19(g) were raised, while mitigating conditions 20(a), 20(b), 20(c), 20(d), and 20(e) were considered. Despite a stable income and favorable character references, the applicant's lack of proactive measures to address his financial obligations was a key factor.
The denial was based on his consistent failure to file tax returns and the presence of two long-standing outstanding debts that remained unresolved. The applicant did not seek financial counseling or demonstrate a good-faith effort to resolve these financial obligations.
Why the Applicant Was Denied
- Applicant failed to file federal tax returns for six consecutive years and state tax returns for nine consecutive years.
- Applicant has two outstanding debts that have been in arrears for several years without resolution.
- Applicant did not seek financial counseling or demonstrate a good-faith effort to resolve his debts.
Conditions Referenced
- 19(a)raisedInability or Unwillingness to Satisfy Debts
- 19(c)raisedA History of Not Meeting Financial Obligations
- 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant filed his late federal and state tax returns.
- 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant has multiple delinquent debts, indicating a continuing course of conduct.
- 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant's failure to file taxes was a choice, not an uncontrollable circumstance.
- 20(c)rejectedThe 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 ControlApplicant did not seek or receive financial counseling.
- 20(e)notedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedApr 25, 2014
- Answer filedMay 8, 2014
- Hearing heldAug 26, 2014
- Decision dateOct 8, 2014
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Lack of Good-faith Efforts to Resolve Financial Obligations
- Consideration of the Whole-person Concept in Security Clearance Determinations