We have had an increase in security clearance cases arising over the last 5 years involving the issue of taxes and security clearances. This article discusses some of the issues that security clearance holders or applicants have had with tax issues and how they have affected their ability to obtain or maintain a security clearance. Tax issues fall under Guideline F of the Adjudicative Guidelines, involving Financial Considerations. The Adjudicative Guidelines are the rules that federal agencies apply to federal employees and government contractors that must hold security clearances.
Specifically, with regards to tax issues, Guideline F, Paragraph 18(f) provides the security concern that the government has with respect to taxes: “failure to file or fraudulently filing annual Federal, state or local income tax returns or failure to pay annual Federal, state or local income tax as required.” This article discusses some of the more prevalent tax issues and what can be done about them to give one the best chance of maintaining or obtaining a security clearance. Please go to page 2 of this article for a full discussion of these issues.
Financial considerations security concerns are the most common issues which can result in the inability to obtain or the loss of a security clearance. As a result, it is very important that when a clearance applicant or holder runs into financial issues that they have counsel to assist and advise them with respect to the security clearance process. In security clearance cases, financial issues are generally referred to as Guideline F cases. In Guideline F cases, the government’s concern is generally focused on how a person has handled his or her finances and/or his or her vulnerability to financial manipulation given a pattern of overspending or debt.
The criteria in Guideline F cases has somewhat changed over the last year with the introduction of Security Executive Agent Directive (SEAD 4) (the new Adjudicative Guidelines governing security clearances). This article discusses some potential tips for those facing financial concern issues in the context of a security clearance matter.
One of the most often raised issues in security clearance cases involves the issue of financial concerns for a federal employee or government contractor. The majority of security clearance cases, by far, involve this issue. This type of security clearance case falls under Guideline F, Financial Considerations of the new June 2017 Adjudicative Guidelines contained in Security Executive Agent Directive 4. Guideline F is the section of the Adjudicative Guidelines which involve financial considerations and provides the basis to evaluate their impact on an individual’s ability to maintain a security clearance.