Summary
The applicant, a 57-year-old test technician, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to failure to timely file federal and state income tax returns and significant delinquent debts. Although he took steps to address his financial issues, including filing overdue tax returns and making payments on debts, the judge found that the financial concerns were not fully mitigated, leading to the denial of his security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant deliberately falsified his April 2013 security clearance application by responding negatively to inquiries concerning any judgments and any liens filed against him (2.a). failed to timely file state income tax returns for tax years 2008 through 2012 (1.a). failed to timely file federal income tax returns for tax years 2009 through 2012 (1.b). owed delinquent student loan debt of $24,302 (1.c). owed delinquent student loan debt of $1,794 (1.d). owed delinquent student loan debt of $924 (1.e). five accounts totaling $1,865 were in collection status (1.f). charged-off credit card debt of $419 (1.g). owed $283 on an auto loan (1.h). owed $139 for cable television/Internet services (1.i). a state tax lien had been filed against him for $522 in 2009 (1.j). two judgments were entered against him in 2009 for $331 to a landscaper (1.k). two judgments were entered against him in 2009 for $1,102 in water damage restoration costs (1.l). owed $159 on a medical debt (1.m). owed $144 on an insurance debt (1.n).
The judge denied the clearance. The government raised disqualifying conditions F.2.a, E.2.a. The judge applied mitigating conditions F.3.a, F.3.c, E.2.b. The decision turned on the following: Applicant failed to file timely federal and state income tax returns for several years; Significant delinquent debts remained unresolved, including over $11,000 in unpaid taxes; The applicant's financial considerations were not fully mitigated despite some recent efforts to address them.
Why the Applicant Was Denied
- Applicant failed to file timely federal and state income tax returns for several years.
- Significant delinquent debts remained unresolved, including over $11,000 in unpaid taxes.
- The applicant's financial considerations were not fully mitigated despite some recent efforts to address them.
Conditions Referenced
- F.2.araisedInability to Satisfy Debts
- E.2.araisedDeliberate Falsification of Information
- F.3.arejectedThe Behavior Was Not RecentWhile the applicant took steps to address debts, the judge found the financial issues ongoing.
- F.3.cappliedThe Individual Has Made Good Faith Efforts to Repay Overdue Creditors
- E.2.bappliedThe Individual Did Not Deliberately Falsify Information
Key Rule Quoted
“"The security clearance decision is a determination that an individual is eligible for access to classified information, and it is based on the whole person concept."”
Procedural Posture
- SOR issuedSep 2, 2015
- Answer filedOct 5, 2015
- Hearing heldFeb 10, 2016rescheduled from 02/08/2016
- Decision dateAug 29, 2016
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Ongoing Financial Issues Impacting Security Clearance Eligibility
- Good Faith Efforts to Address Financial Delinquencies Under Guideline F