Summary
A 49-year-old defense contractor and veteran was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited the applicant's failure to timely file federal income tax returns for 2008, 2009, and 2010, which resulted in two IRS tax liens totaling $113,673 in August 2011 and $64,910 in January 2012. Additionally, the applicant pays $3,100 monthly in alimony and child support, and his ex-wife receives half of his military retirement.
The judge determined that the applicant's financial difficulties were largely due to circumstances beyond his control, specifically marital discord and his reliance on his wife for financial management. The applicant demonstrated mitigating factors by engaging a tax consulting company to resolve his tax liabilities and initiating an installment plan with the IRS.
Ultimately, the judge found that the applicant's financial problems were not caused by irresponsible spending and that he had made a good-faith effort to address his tax obligations. Based on these mitigating circumstances, the security clearance was granted.
Why the Applicant Prevailed
- The applicant's financial issues were largely due to circumstances beyond his control, including marital discord and reliance on his wife for financial management.
- The applicant engaged a tax consulting company to resolve his tax liabilities and initiated an installment plan with the IRS.
- The applicant's financial problems were not caused by irresponsible spending, and he has made efforts to address his tax obligations.
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)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJun 18, 2014
- Answer filedAug 19, 2014
- Hearing heldMar 10, 2015
- Decision dateApr 21, 2015
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
- Good-faith Efforts to Resolve Tax Liabilities
- Consideration of Personal Circumstances Affecting Financial Management