Summary
A 54-year-old defense contractor employee was denied a security clearance primarily due to unresolved financial issues, specifically over $200,000 in unpaid federal and state taxes. While the judge found the applicant's security clearance application technically correct, the significant and ongoing tax debt raised concerns under Guideline F (Financial Considerations).
The applicant had multiple tax liens filed against her, including an IRS lien in 1993 for $83,044, and another in December 2003 for $6,697 covering tax years 1996 and 1997. Her state of residence also filed liens in November 2000 for $17,697, October 2003 for $11,333, and January 2004 for $11,366. As of January 9, 2007, she owed the state $157,838 for tax years 1995 and 1998 through 2004. Additionally, the applicant had not filed her 2006 tax returns and estimated her current IRS debt at over $100,000, despite entering into several repayment agreements without making substantial progress.
Although mitigating conditions related to financial considerations were applied, the applicant failed to demonstrate a good-faith effort to resolve her tax debts. This failure to address the substantial financial obligations led to questions about her reliability and trustworthiness, resulting in the denial of her security clearance.
Why the Applicant Was Denied
- Applicant has over $200,000 in unpaid federal and state taxes.
- Applicant failed to demonstrate a good-faith effort to resolve her tax debts.
- Financial issues raised questions about the applicant's reliability and trustworthiness.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedA History of Not Meeting Financial Obligations
- FC MC 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's tax issues date back to before 1993 and are ongoing.
- FC MC 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant's unemployment and husband's illness did not justify failure to pay current taxes.
- FC MC 20(c)rejectedThe Person Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlApplicant's payment plans did not effectively reduce her overall tax debt.
- FC MC 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant's payments did not address current tax obligations.
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedDec 11, 2006
- Answer filedJan 19, 2007
- Hearing heldFeb 27, 2007
- Decision dateMar 30, 2007
Cite For
- Denial of Security Clearance Due to Significant Unresolved Financial Obligations
- Interpretation of Tax-related Questions on Security Clearance Applications
- Consideration of Personal Conduct Versus Financial Considerations in Clearance Determinations