Summary
This case concerns a 51-year-old married woman with four children who sought to retain her security clearance. The allegations against her involved a failure to timely file income tax returns for the years 1992 through 1994. These financial difficulties arose from her husband's job loss and a failed real estate investment, which ultimately led to bankruptcy.
The judge considered Guideline H (Drug Involvement) and Guideline I (Psychological Conditions) in the assessment. Disqualifying conditions H.1.e, H.1.2, and H.1.3 were raised. However, mitigating conditions H.2.2 and H.2.6 were applied.
The applicant demonstrated extenuating circumstances due to her financial hardship and bankruptcy. She took prompt action to file her overdue tax returns with professional assistance after her bankruptcy was resolved, and showed genuine remorse and a commitment to future compliance. Based on these factors, the security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant demonstrated extenuating circumstances surrounding her failure to file tax returns due to financial hardship and bankruptcy.
- She took prompt action to file her overdue tax returns with the assistance of a professional tax advisor after her bankruptcy was resolved.
- The applicant showed genuine remorse and a commitment to timely filing her tax returns in the future.
Conditions Referenced
- H.1.eraisedCriminal Conduct Involving Obstruction or Corruption of Government Functions.
- H.1.2raisedCriminal Conduct Punishable by Confinement for One Year or More.
- H.1.3raisedAn Established Pattern of Criminal Conduct, Whether the Individual Was Convicted or Not.
- H.2.2appliedExtenuating Circumstances Surrounding the Offense.
- H.2.6appliedTransitory Conditions Directly or Significantly Contributing to the Conduct in the Absence of Subsequent Criminal Conduct.
Key Rule Quoted
“"Each clearance decision must be a fair and impartial common sense determination based upon consideration of all the relevant and material information and the pertinent criteria and adjudication policy in enclosure 2, including as appropriate."”
Procedural Posture
- SOR issuedJul 31, 1995
- Answer filedSep 19, 1995
- Hearing heldJan 10, 1997
- Decision dateJan 28, 1997
Cite For
- Extenuating Circumstances in Tax-related Cases Under Guideline H
- Mitigating Factors Related to Financial Hardship and Bankruptcy
- Consideration of Remorse and Future Compliance in Security Clearance Decisions