Summary
A 44-year-old defense contractor was denied a security clearance due to financial considerations under Guideline F. The applicant failed to file federal income tax returns from 2009 through 2012 and state income tax returns from 2008 through 2012. Additionally, the applicant owed over $170,000 in student loans.
Other outstanding debts included four medical bills totaling $1,263 and a $227 credit card debt. These issues raised disqualifying conditions under Guideline F, specifically concerning a history of not meeting financial obligations and an inability or unwillingness to satisfy debts.
Despite the application of several mitigating conditions, the judge found insufficient evidence to resolve the financial trustworthiness concerns. Consequently, the applicant was denied eligibility for access to sensitive information.
Why the Applicant Was Denied
- Applicant failed to file Federal income tax returns for years 2009 through 2012 and state returns for years 2008 through 2012.
- Applicant owes over $170,000 in student loans and has other unpaid delinquent debts.
- Insufficient evidence was presented to mitigate the outstanding financial trustworthiness concerns.
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)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurApplicant failed to demonstrate that her financial problems are unlikely to recur.
- AG ¶ 20(b)rejectedConditions Beyond the Person's Control Contributed to the Financial ProblemApplicant admitted her tax omissions were due to laziness and disorganization.
- AG ¶ 20(c)rejectedReceived Counseling for the Problem or Indications That the Problem Is Under ControlNo evidence of financial counseling or professional assistance was provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsRecent payment agreements do not demonstrate a good-faith effort to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtNo evidence was provided to dispute any debt.
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 issuedFeb 3, 2015
- Answer filedApr 30, 2015
- Hearing held—Decided on the written record without a hearing.
- Decision dateFeb 23, 2016
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Insufficient Evidence to Mitigate Financial Trustworthiness Concerns
- The Importance of Demonstrating a Good-faith Effort to Resolve Debts