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Summary

The applicant, a 34-year-old defense contractor, was denied a security clearance due to a history of criminal conduct and financial issues, including failure to file federal and state tax returns and significant debts. The judge found that the applicant's lack of documented efforts to resolve these issues raised serious concerns about his reliability and trustworthiness.

Under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: Applicant is indebted to the IRS in the amounts of $4,380.37 (for tax years 1984 and 1985), $2,928.28 for tax year 1986, and $3,231.71 for tax year 1987 (2.a). Applicant is indebted to State A's Department of Revenue in the amounts of $1,533.41 (for tax year 1985) and $2,237.59 (for tax years 1989-1991) (2.b). Applicant is indebted to Creditor 1 in the approximate amount of $18.00 for an account turned over to collection (2.c). Applicant is indebted to Creditor 2 in the amount of $120.23 for an account turned over to collection (2.d). Applicant is indebted to Creditor 3 in the amount of $546.82 for an account turned over to collection (2.e). Failure to file federal income tax returns for the tax years of 1984-1985, 1987 and 1992-1994 (1.a). Failure to file State A income tax returns for the tax years of 1986-1988 and 1992-1994 (1.b). Failure to file federal income tax returns for the tax years of 1984-1985, 1987 and 1992-1994 (1.c). Failure to file State A income tax returns for the tax years of 1986-1988 and 1992-1994 (1.d). Failure to file federal income tax returns for the tax years of 1984-1985, 1987 and 1992-1994 (1.e). Failure to file State A income tax returns for the tax years of 1986-1988 and 1992-1994 (1.f). Failure to file federal income tax returns for the tax years of 1984-1985, 1987 and 1992-1994 (1.g). Failure to file State A income tax returns for the tax years of 1986-1988 and 1992-1994 (1.h). Failure to file federal income tax returns for the tax years of 1984-1985, 1987 and 1992-1994 (1.i). Failure to file State A income tax returns for the tax years of 1986-1988 and 1992-1994 (1.j). Failure to file federal income tax returns for the tax years of 1984-1985, 1987 and 1992-1994 (1.k). Failure to file State A income tax returns for the tax years of 1986-1988 and 1992-1994 (1.l). Failure to file federal income tax returns for the tax years of 1984-1985, 1987 and 1992-1994 (1.m). Failure to file State A income tax returns for the tax years of 1986-1988 and 1992-1994 (1.n).

The judge denied the clearance. The government raised disqualifying conditions DC 1, DC 2, DC 3. The decision turned on the following: The applicant failed to file federal income tax returns for multiple years, constituting criminal conduct; The applicant has a history of not meeting financial obligations, including significant tax debts and other unpaid debts; The applicant provided no evidence of efforts to resolve his tax delinquencies or financial obligations.

Why the Applicant Was Denied

• The applicant failed to file federal income tax returns for multiple years, constituting criminal conduct.
• The applicant has a history of not meeting financial obligations, including significant tax debts and other unpaid debts.
• The applicant provided no evidence of efforts to resolve his tax delinquencies or financial obligations.

Conditions Referenced

Key Rule Quoted

“A decision to grant or continue an Applicant's request for security clearance may be made only upon a threshold finding that to do so is clearly consistent with the national interest.”

Procedural Posture

• SOR issuedApr 14, 1997
• Answer filedMay 22, 1997Applicant elected to have the case decided on the written record.
• Hearing held—
• Decision dateDec 10, 1997

Cite For

• Criminal Conduct Related to Tax Filing Delinquencies Under Guideline J
• Financial Considerations and Inability to Meet Obligations Under Guideline F
• Lack of Mitigating Evidence in Cases of Financial Irresponsibility