Summary
A 44-year-old truck driver was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited the applicant's failure to timely file federal income tax returns for tax years 2002-2005, a violation of federal criminal law (26 U.S.C. § 7203). Additionally, the applicant owed approximately $35,000 in federal taxes and an unknown amount in state taxes, with state and federal tax liens filed against him.
Disqualifying conditions F3 (unexplained affluence or excessive indebtedness) and F1 (inability or unwillingness to satisfy debts) were raised. While mitigating conditions F6 (financial problems not recent), E2 (isolated incident), F2 (good-faith effort to resolve), F3 (circumstances beyond control), F4 (counseling sought), and F5 (no recurrence) were considered, they were not sufficient to overcome the security concerns.
The denial was based on the applicant's significant and current unpaid tax debts, totaling approximately $35,000, and his lack of a realistic plan to resolve this indebtedness. This demonstrated ongoing financial irresponsibility and a lack of attention to important financial matters.
Why the Applicant Was Denied
- Applicant has significant unpaid tax debts totaling approximately $35,000, which raise security concerns under Guideline F.
- Applicant does not have a realistic plan to resolve his tax indebtedness, indicating financial irresponsibility.
- The applicant's financial problems are current and ongoing, demonstrating a lack of attention to important financial matters.
Conditions Referenced
- F3raisedInability to Satisfy Debts
- F1raisedFinancial Problems
- F6appliedGood-faith Effort to Repay DebtsApplicant had a repayment agreement with the IRS and made payments as recently as 2005.
- E2rejectedBehavior Not RecentFinancial problems are current and ongoing.
- F2rejectedIsolated IncidentFinancial problems involve multiple tax years.
- F3rejectedConditions Beyond ControlNo evidence of circumstances beyond applicant's control.
- F4rejectedCounseling ReceivedNo evidence of professional assistance sought.
- F5rejectedAffluence From Legal SourcesNot applicable to the applicant's situation.
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 issuedAug 30, 2006
- Answer filed—
- Hearing heldFeb 13, 2007
- Decision dateMar 19, 2007
Cite For
- Denial of Clearance Due to Significant Unpaid Tax Debts Under Guideline F
- Lack of a Realistic Plan to Resolve Financial Issues as a Basis for Denial
- Consideration of Personal Conduct Under Guideline E in Relation to Financial Irresponsibility.