Summary
A 66-year-old information technologist, who had held a security clearance since 1973, was denied a continued security clearance under Guideline F (Financial Considerations). The denial stemmed from his failure to file federal and state tax returns for ten consecutive years, from 2004 through 2013. This non-compliance was cited as a history of disregarding rules and regulations, raising security concerns.
The applicant eventually filed the outstanding returns shortly before and after his hearing. However, the judge determined that his explanations for the prolonged non-filing were insufficient to mitigate the concerns. The judge concluded that the applicant's procrastination and his delay in addressing the issue until faced with the potential loss of his clearance indicated ongoing doubts about his reliability and judgment.
Disqualifying conditions 19(a), 19(c), and 19(g) were raised, while mitigating conditions 20(a), 20(b), 20(c), and 20(d) were applied. Ultimately, the long history of non-compliance and the timing of the applicant's actions led to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant did not file federal and state tax returns for tax years 2004 through 2013, demonstrating a history of disregarding rules and regulations.
- The applicant's explanations for not filing were not sufficient to mitigate the security concerns raised by his conduct.
- The applicant's procrastination and failure to act until faced with the potential loss of his security clearance indicated ongoing doubts about his reliability and judgment.
Conditions Referenced
- 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- 19(a)rejectedInability or Unwillingness to Satisfy DebtsNo evidence of delinquent debts or back taxes was presented.
- 19(c)rejectedA History of Not Meeting Financial ObligationsNo evidence of delinquent debts or back taxes was presented.
- 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe sudden departure of the applicant's second wife and the illness of his fiancé contributed to his failure to file.
- 20(c)appliedThe 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 ControlThe applicant retained a tax accounting firm to prepare his taxes.
- 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's ten-year history of non-filing indicates a pattern of behavior.
- 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsNo delinquent debts were alleged.
Key Rule Quoted
“"The ultimate determination of whether to grant eligibility for a security clearance must be a commonsense judgment based on careful consideration of the guidelines and the whole-person concept."”
Procedural Posture
- SOR issuedNov 7, 2014
- Answer filedDec 5, 2014
- Hearing heldJun 5, 2015
- Decision dateSep 14, 2015
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- The Importance of Timely Compliance with Tax Obligations in Security Clearance Evaluations
- The Impact of Procrastination on Security Clearance Eligibility Decisions