Summary
The applicant, a 44-year-old employed by defense contractors since 1994, faced security concerns under Guideline F due to a history of unpaid federal and state taxes dating back to the early 1990s. Despite resolving some debts and demonstrating financial responsibility in recent years, the applicant failed to mitigate the ongoing tax liabilities, leading to a denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has owed $19,459.83 in federal self-employment taxes for the years 1991-1992 since 1993, and $12,477.00 for tax year 1990 remains unpaid (1.a). Applicant has owed a state $1,711.00 in penalties for an early withdrawal of monies from his retirement plan in 2001, which remains unpaid (1.b). Applicant has an outstanding medical bill for $430.00 related to treatment his younger son received after an automobile accident in 2002, which remains unpaid (1.c). Applicant paid $79.00 to a collection agency for an outstanding medical bill from 2000/2001 (1.d). Applicant acknowledged an outstanding medical bill for $430.00 related to treatment his younger son received after an automobile accident in 2002, which remains unpaid (1.e). Applicant has consistently disputed another medical bill for $493.00, claiming it is for treatment he never received (1.f). Applicant paid $78.00 to an x-ray imaging clinic for a 2002 outstanding bill (1.g). Applicant paid $188.79 to a department store for checks issued approximately ten years ago but returned for insufficient funds (1.h). The IRS documented receipt of $3,543.29 from Applicant on June 22, 2003, which is consistent with his statement that he paid the outstanding tax bill on June 2, 2003 (1.i). The IRS also received $332.72 on April 21, 2003, which correlates to Applicant's assertion that he paid the debt on April 21, 2003 (1.j).
The judge denied the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The judge applied mitigating conditions E2.A2.1.3.1, E2.A6.1.3.6. The decision turned on the following: The applicant has a long history of unpaid federal and state taxes totaling approximately $33,655.00; Despite some recent efforts to resolve debts, significant tax liabilities remain unpaid and unresolved; The applicant's financial issues date back over a decade, which undermines claims of recent financial responsibility.
Why the Applicant Was Denied
- The applicant has a long history of unpaid federal and state taxes totaling approximately $33,655.00.
- Despite some recent efforts to resolve debts, significant tax liabilities remain unpaid and unresolved.
- The applicant's financial issues date back over a decade, which undermines claims of recent financial responsibility.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A2.1.3.1rejectedThe Behavior Was Not RecentThe applicant's financial indebtedness began in the early 1990s and continues to the present.
- E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsRecent efforts to resolve debts are insufficient to mitigate the longstanding unpaid tax liabilities.
Key Rule Quoted
“An applicant "has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his clearance."”
Procedural Posture
- SOR issuedFeb 8, 2005
- Answer filedFeb 24, 2005Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on written record.
- Decision dateJan 24, 2006
Cite For
- Denial of Clearance Due to Unresolved Tax Liabilities Under Guideline F
- Impact of Long-standing Financial Issues on Security Clearance Eligibility
- Insufficient Recent Financial Responsibility to Mitigate Past Debts