Summary
A 60-year-old military veteran and business owner was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of deliberately falsifying material facts on his May 23, 2013, Electronic Questionnaires for Investigations Processing (e-Qip) by failing to disclose a federal tax debt and an associated lien.
Specifically, the applicant answered "No" to questions regarding liens for unpaid taxes and current delinquency on federal debt, despite having a federal tax lien of approximately $155,000 imposed on August 3, 2010, for unpaid payroll taxes from 2004, 2005, and two quarters of 2006. He also failed to disclose being over 120 days delinquent on this federal tax debt.
The judge found that the applicant knowingly failed to disclose his tax obligations and did not demonstrate sufficient mitigation of the financial issues. The denial was based on the deliberate failure to disclose the $155,000 federal tax lien, the applicant's awareness of his responsibility to pay payroll taxes, and the lack of evidence for circumstances beyond his control contributing to the financial problems.
Why the Applicant Was Denied
- The applicant deliberately failed to disclose a federal tax lien of approximately $155,000 on his security clearance application.
- The applicant was aware of his responsibility to pay payroll taxes and chose not to do so, indicating a lack of judgment and reliability.
- The applicant did not provide evidence of circumstances beyond his control that contributed to his financial issues.
Conditions Referenced
- F.1appliedInability or Unwillingness to Satisfy Debts
- F.3appliedA History of Not Meeting Financial Obligations
- E.2appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- F.3appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- E.1rejectedThe Individual Made Prompt, Good-faith Efforts to Correct the Omission, Concealment, or Falsification Before Being Confronted with the Facts
- E.2rejectedThe Offense Is so Minor, or so Much Time Has Passed Since the Offense That It Is Unlikely to Recur
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 13, 2015
- Answer filedJan 11, 2016
- Hearing heldMar 15, 2016record remained open until 03/22/2016
- Decision dateMay 31, 2016
Cite For
- Deliberate Omission of Financial Obligations Under Guideline E
- Failure to Mitigate Significant Tax Liabilities Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility