Summary
A 53-year-old CEO's security clearance application was DENIED under Guideline F (Financial Considerations) due to a history of delinquent debts, primarily unpaid federal and state income taxes for 2011 and 2012. The Statement of Reasons detailed several financial issues, including an $832 debt to a state child support enforcement department, paid on January 22, 2014, and a $124 debt to a cellular company, paid on February 14, 2014.
Regarding the tax delinquencies, the applicant paid $12,646 in outstanding federal income taxes for 2012 on April 17, 2014, one year late. For 2011 federal taxes, he paid $5,545 on October 20, 2013, about 18 months late, and the remaining $1,844 on April 17, 2014, two years late. State income taxes for 2012, totaling $3,855, were paid on June 19, 2014, over one year late, and 2011 state taxes of $1,566 were paid on the same date, over two years late.
Despite some efforts to resolve other debts, the applicant failed to provide sufficient evidence of good-faith efforts to resolve the tax delinquencies until after the Statement of Reasons was issued. The denial was based on the applicant's failure to timely file and pay taxes for multiple years and the ongoing nature of his financial issues, which raised concerns about his judgment and reliability.
Why the Applicant Was Denied
- The applicant failed to timely file and pay federal and state income taxes for 2011 and 2012.
- The applicant did not provide evidence of good-faith efforts to resolve tax delinquencies until after the issuance of the SOR.
- The applicant's financial issues were ongoing for several years, raising concerns about his judgment and reliability.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile the applicant experienced financial difficulties due to economic conditions, he did not demonstrate responsible actions to mitigate tax issues.
- AG ¶ 20(c)rejectedCounseling or Resolution of ProblemsThe applicant did not participate in financial counseling and resolved tax debts only after significant delays.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant's payments on tax debts were made long after the deadlines, indicating a lack of good-faith effort.
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedJun 13, 2014
- Answer filedJun 24, 2014Applicant requested a decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateDec 9, 2014
Cite For
- Denial of Security Clearance Due to Unresolved Tax Liabilities
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Insufficient Evidence of Good-faith Efforts to Mitigate Financial Issues