Summary
A 62-year-old applicant was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). As of August 2004, the applicant had not filed federal income tax returns for the years 1986-1991, resulting in a tax liability of $395,438.36. Although monthly payments to the IRS under an installment agreement began in 1996, the applicant's efforts to resolve these outstanding financial obligations were deemed insufficient and untimely.
Further concerns arose from the applicant's lack of candor during the security clearance process. In response to inquiries about being over 180 days or 90 days delinquent on any debts within the last seven years, the applicant responded "no" to both, certifying these responses as true, complete, and accurate. These statements were found to be false, as they failed to disclose the federal income tax delinquencies.
The applicant's explanations for failing to file tax returns, including procrastination and difficulty collecting paperwork, were not accepted, and her varying statements were viewed as unfulfilled promises. The decision concluded that the applicant's explanations for her financial issues were unsatisfactory and did not demonstrate conditions beyond her control, leading to the denial of her security clearance.
Why the Applicant Was Denied
- Applicant failed to file federal income tax returns for multiple years, resulting in significant tax liabilities.
- Applicant's explanations for her financial issues were deemed unacceptable and indicative of intransigence.
- Applicant was not candid in her responses on the SF 86 regarding her financial delinquencies.
Conditions Referenced
- FC DC E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
- FC DC E2.A6.1.2.2raisedDeceptive or Illegal Financial Practices
- FC DC E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- PC DC E2.A5.1.2raisedConduct Involving Questionable Judgment
- PC DC E2.A5.1.3raisedUntrustworthiness, Unreliability, Lack of Candor
- FC MC E2.A6.1.3.6rejectedGood-faith Effort to Repay Overdue CreditorsApplicant's installment agreement payments were insufficient to demonstrate a genuine effort to resolve her debts.
Key Rule Quoted
“Complete honesty and candor on the part of applicants for access to classified information is essential to make an accurate, meaningful security clearance determination.”
Procedural Posture
- SOR issuedDec 1, 2003
- Answer filednullApplicant's response was unsworn and undated.
- Hearing heldAug 18, 2004Joint hearing with Applicant's husband.
- Decision dateJan 19, 2005
Cite For
- Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
- Lack of Candor in Security Clearance Applications Under Guideline E
- Insufficient Efforts to Resolve Financial Obligations as a Basis for Denial of Clearance.