Summary
The applicant, a 33-year-old communications specialist, faced security concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to delinquent debts and failure to file tax returns. The judge found that the applicant's financial issues were largely due to circumstances beyond her control, including her husband's health problems and loss of income. The applicant demonstrated responsible behavior in addressing her debts and filing her taxes, leading to a decision to grant her security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant answered “no” on her security clearance application when asked if in the last seven years she failed to file or pay federal or state taxes as required by law. She had not filed her 2009 federal and state taxes at the time she completed the security clearance application. Applicant partially completed her federal and state tax returns forms for 2009. She did not understand why she owed taxes since the family income had been drastically reduced. She sent the tax forms to a tax preparation firm to be checked and had not completed the process of verifying the taxes. She knew at the time she completed her security clearance application that she had not filed the returns and would owe taxes. She interpreted the question on the application as asking if she submitted a tax return and deliberately or negligently failed to pay the taxes owed. She misinterpreted the intent of the question. She informed the OPM investigator that she had not yet filed her 2009 federal and state tax returns, but would when they had been verified. She stated that she did not deliberately fail to provide correct information since she knew that it is very easy to determine if a person filed tax returns and paid the taxes owed (2.a). failed to file a federal tax return for 2009 (1.a). failed to file a state tax return for 2009 (1.b). a student loan account with a balance of $16,456 past due for $684 (1.c). a credit card debt charged off for $558 (1.d). medical accounts in collection for $443 (1.e). medical accounts in collection for $202 (1.f). medical accounts in collection for $170 (1.g). medical accounts in collection for $140 (1.h). medical accounts in collection for $116 (1.i). medical accounts in collection for $113 (1.j). medical accounts in collection for $113 (1.k). medical accounts in collection for $108 (1.l). medical accounts in collection for $68 (1.m). medical accounts in collection for $49 (1.n). medical accounts in collection for $30 (1.o). another student loan with a balance of $5,269 past due for $42 (1.p). medical accounts in collection for $97 (1.q). medical accounts in collection for $64 (1.r). medical accounts in collection for $443 (1.s). medical accounts in collection for $815 (1.t). medical accounts in collection for $61 (1.u).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 16(a). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(c). The decision turned on the following: The applicant demonstrated a good-faith effort to resolve her delinquent debts through payment plans and timely tax filings; The financial difficulties were largely due to circumstances beyond the applicant's control, including her husband's health issues and loss of income; The applicant's financial problems are now under control, and she has shown responsible behavior in managing her obligations.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve her delinquent debts through payment plans and timely tax filings.
- The financial difficulties were largely due to circumstances beyond the applicant's control, including her husband's health issues and loss of income.
- The applicant's financial problems are now under control, and she has shown responsible behavior in managing her obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(c)appliedReceiving Counseling or Evidence of Problem Resolution
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJan 15, 2015
- Answer filedFeb 13, 2015
- Hearing heldApr 14, 2015
- Decision dateMay 27, 2015
Cite For
- Mitigation of Financial Concerns Due to Circumstances Beyond Control
- Good-faith Efforts in Debt Repayment
- Interpretation of Personal Conduct in Security Clearance Applications