PSH-21-0037 - In the Matter of Personnel Security Hearing

On June 24, 2021, an Administrative Judge determined that the Individual's access authorization under 10 C.F.R. Part 710 should not be granted. The Individual is employed by a DOE contractor in a position that requires her to hold a DOE security clearance. The Local Security Office (LSO) received potentially derogatory information regarding the Individual's financial state. Under Guideline F, the LSO alleged: (1) The Individual has an unpaid collection account in the amount of $3,418; (2) The Individual has unpaid charge-off accounts in the amount of $10,176; (3) The Individual failed to file personal income tax returns with the Internal Revenue Service for tax years 2013 through 2017; (4) The Individual failed to file state personal income tax returns for tax years 2013 through 2017. At the hearing, the Individual and one other witness testified. Through testimony and the evidence submitted by DOE Counsel and the Individual, it was established that not only had the Individual resolved all of the charge-off and collection account delinquencies, which she attributed to living outside of her means and contributing financially to her mother's household, but the Individual had also satisfied her state income tax obligations for tax years 2013 through 2016. She was making payments pursuant to a payment plan to satisfy her state income tax obligations for 2017. Further, the Individual had engaged the services of a CPA to resolve her federal income taxes obligations. She had submitted her tax returns for years 2013 through 2017 in October 2020, with the intention of establishing a payment plan for all tax years once all returns had been accepted by the Internal Revenue Service (IRS). She had also filed her 2018 and 2019 tax returns in 2020, but admitted at the time of the hearing that she had not yet filed her taxes for tax year 2020, stating that she had not filed for an extension and voiced her lack of concern with regard to filing her 2020 income taxes a week late. The Individual's failure to file income taxes for tax year 2020 raises concerns with regard to her judgement, fails to illustrate that this situation is unlikely to recur, and fails to illustrate that she acted in good faith to discharge this ongoing obligation, especially since she previously indicated she understood her tax obligations. Additionally, a payment plan had not yet been established to satisfy her delinquent federal income taxes. Further, although the Individual provided financial assistance to her mother, which she indicates contributed to her financial issues, the Administrative Judge could not find that she acted responsibly under the circumstances. Based on the testimony of all witnesses and the evidence submitted, the Administrative Judge therefore concluded that the Individual's access authorization should not be granted. OHA Case No. PSH-21-0037 (Kimberly Jenkins-Chapman).