Summary
The applicant, a 60-year-old test pilot with a history of financial difficulties, sought a security clearance but was denied due to an unresolved tax debt of approximately $200,000 owed to the IRS. Although he had made efforts to resolve his debts and provided some accurate information on his Security Clearance Application, the judge found that he did not demonstrate sufficient mitigation of the financial concerns.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In the last 7 years, have you had a lien placed against your property for failing to pay taxes or other debts? Applicant responded "Yes" and he listed the date of January 1, 1998, for a lien to the IRS in the amount of $74,000. At the time Applicant completed the SCA, liens had been placed against him for all of the debts listed as 1.b. through 1.h., above (2.a). This debt to Creditor 1 is listed in the SOR in the amount of $87 (1.a). This debt to the IRS is in the amount of $92,733 on a tax lien for unpaid federal taxes, interest and penalties (1.b). This debt to the IRS is in the amount of $22,445 on a tax lien for unpaid federal taxes, interest and penalties (1.c). This debt to the IRS is in the amount of $80,209 on a tax lien for unpaid federal taxes, interest and penalties (1.d). This debt for a state tax lien to State of California is listed in the SOR in the amount of $22,744 (1.e). This debt for a state tax lien to State of California is listed in the SOR in the amount of $7,362 (1.f). This debt for a state tax lien to State of California is listed in the SOR in the amount of $2,054 (1.g). This debt for a state tax lien to State of California is listed in the SOR in the amount of $12,778 (1.h).
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.A6.1.3.6. The decision turned on the following: The applicant has an unresolved tax debt of approximately $200,000 owed to the IRS; The applicant's history of financial irresponsibility includes failure to file tax returns timely; The applicant's proposed settlement with the IRS has not yet been accepted.
Why the Applicant Was Denied
- The applicant has an unresolved tax debt of approximately $200,000 owed to the IRS.
- The applicant's history of financial irresponsibility includes failure to file tax returns timely.
- The applicant's proposed settlement with the IRS has not yet been accepted.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial Considerations - Inability to Satisfy Debts
- E2.A6.1.2.3raisedFinancial Considerations - History of Not Meeting Financial Obligations
- E2.A6.1.3.6appliedFinancial Considerations - Good Faith Effort to Repay Overdue Debt
Key Rule Quoted
“"the clearly consistent standard indicates that security-clearance determinations should err, if they must, on the side of denials."”
Procedural Posture
- SOR issuedDec 5, 2005
- Answer filedJan 4, 2006Applicant responded in writing to the SOR allegations.
- Hearing heldJul 19, 2006Applicant appeared pro se.
- Decision dateAug 25, 2006
Cite For
- Denial of Clearance Due to Unresolved Tax Debts Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Consideration of Good Faith Efforts to Resolve Debts in Security Clearance Cases