Summary
A 51-year-old defense contractor was denied a security clearance under DOHA Guidelines E (Personal Conduct) and F (Financial Considerations) due to a history of financial issues. The Statement of Reasons cited the applicant's failure to file federal income tax returns for 2005 and 2006, a federal tax lien of $61,808 entered around December 2011, and an unpaid court-approved settlement debt of $43,362 from April 2010.
The judge determined that the applicant's failure to file tax returns for two years, along with the significant tax lien and settlement debt, demonstrated a lack of reliability and compliance with regulations. These issues raised disqualifying conditions under both Guidelines E and F.
Despite the application of several mitigating conditions, the judge found that the applicant did not sufficiently demonstrate that these conditions applied to his financial problems or personal conduct. Consequently, the security clearance was DENIED.
Why the Applicant Was Denied
- Applicant failed to file federal income tax returns for 2005 and 2006, which raised concerns about reliability and compliance with regulations.
- Applicant's financial issues included a federal tax lien of $61,808 and a court-approved settlement debt of $43,362, which he defaulted on due to negligence.
- The applicant did not demonstrate that mitigating conditions applied to his financial issues or personal conduct.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- E.16(c)raisedCredible Adverse Information in Several Adjudicative Issue Areas
- E.16(d)raisedCredible Adverse Information That Is Not Explicitly Covered Under Any Other Guideline
- F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant established a meaningful track record of payment on the tax lien.
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem
- E.17(c)rejectedThe Offense Is so Minor, or so Much Time Has Passed
- E.17(d)rejectedThe Individual Has Acknowledged the Behavior and Obtained Counseling
Key Rule Quoted
“"Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines."”
Procedural Posture
- SOR issuedAug 1, 2014
- Answer filedSep 16, 2014Requested decision based on administrative record.
- Hearing heldFeb 23, 2015Applicant waived the 15-day hearing notice requirement.
- Decision dateJun 29, 2015
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Financial Issues Impacting Security Clearance Eligibility Under Guideline E
- Whole-person Assessment in Security Clearance Determinations