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Summary

A 57-year-old analyst for a DOD contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons alleged that the applicant failed to timely file federal and state income tax returns for the tax years 2007 through 2011, raising disqualifying conditions F.19(c) and F.19(g).

However, the applicant demonstrated significant mitigating actions. He filed all overdue tax returns for the years 2008 through 2011, which showed no additional taxes owed. Furthermore, he established a payment plan with the IRS for taxes owed for the years 2012, 2013, and 2014, and began making payments before any liens were filed.

The judge found that the applicant's good-faith efforts to resolve his tax issues, coupled with his demonstration of responsible financial management during periods of unemployment, successfully mitigated the financial concerns. Mitigating conditions F.20(c) and F.20(d) were applied, leading to the decision to grant the security clearance.

Why the Applicant Prevailed

• The applicant filed all overdue tax returns for the years 2008 through 2011, showing no additional taxes owed.
• He established a payment plan with the IRS for taxes owed for the years 2012, 2013, and 2014, and began making payments before any liens were filed.
• The applicant demonstrated responsible financial management during periods of unemployment.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedJun 16, 2015
• Answer filedJul 11, 2015Requested decision on the written record.
• Hearing held—No hearing; decision based on written record.
• Decision dateFeb 23, 2016

Cite For

• Mitigation of Financial Concerns Under Guideline F
• Good-faith Efforts to Resolve Tax Issues
• Whole-person Concept in Security Clearance Evaluations