ÿWPCâ' \ˆE×~x=é¡9ÜmÝNQJ >/¹FŠFQ% ŸÓCÉÁjé#ò ±f9-ÆœLI´änÍž<“„øV:84V‰pc¦–|¦”¨Ë¯ðCy@I·}RÔ¾ç¢(¡üÃtd—ûØYa¯@t èºËVÞgªà‹ƒ#õ8_å§OPÓ瑹Ð7Öĉ÷¨[&ûÔi‹÷¡á­Òg“ñýÛ=âÐð—¹XP˜= xXÒô4I\€y°âZe¥„—”‚%|ÊþØJ‰÷¶¬7î23èM[±‘ÑŽ§¨ö[É`]h`zè2íQäœ5xV<_˜–UO䮘náàw÷Ž‰ÿœ¨ã’¦oý[‘5Bn†…‹V÷!õý¨X“冲8Î;³\o'êjR%¶‘ÈòWÅ·Ußr›.c”%ð&œrý‚WÂøXl"¶ùÐ,±nÀñš¸ú"ÜÄ¥MÚ-ç`Y^rcZS»âXïd1dzÏCËø6:]ÂjÄØ>6T-+¾!(Ú~d}$^®'É–yŠÁ¯¡Fh SÞ•7ði•Å~Ï+j“‹oè !ˆqþ>pÑ⪠]¼kaUYûÓ$ wã$ÆFYùš„( WZ–ù™F £Îf‚¦|jZ¹¢LŽ™îa#ÉNU N %e 0:k àZ¥ ^ ÿ w 4 # 2 m4 0 ©K K àZô EN 0 DP N” ‡– !S>~‘‡Æ–Õ\|1è­ 0N• • ã ã jó$*]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]%]% B‡%‡%‡%‡% AS¤%Æ÷% 0V½& 0V' 0Di'i' D5­'˜Hewlett-Packard HP LaserJet P3010 SeriesÈÈÈÈ0(ÖÃ9 Z‹6Times New Roman RegularX(üœ$¡¡ÔUSUS.,Ô8DocumentManagement::ModifiedBooleanTRUEú–BK;E•JntFold3|xÿU‹ÿÿÿÿ(Y(2Íx$¤¤Ý ƒüœ!ÝÔUSUS.,ÔÝ  ÝÔ€ôòXXÔÓ  Óà  àòòÚ  Ú0Ú  Úóó8DocumentManagement::ModifiedBooleanTRUE(#Ã$òòÚ  Ú0Ú  Úóó }Ý ƒ Íx$ÝÔUSUS.,ÔÔ€ô,òXXÔÓ  Óà  àòòÚ  Ú3Ú  ÚóóÝ  ÝÔ_Ôòò€See€also,€óóDirective,€Encl.€2,€App.€2€ðð€18€regarding€the€concern€under€Guideline€F:€ð ðFailure€or€inability€to€liveÐ ° Ðwithin€oneððs€means,€satisfy€debts,€and€meet€financial€obligations€may€indicate€poor€self„control,€lack€of€judgment,€orÐ tÄ Ðunwillingness€to€abide€by€rules€and€regulations,€all€of€which€can€raise€questions€about€an€individualððs€reliability,Ð 8ˆ Ðtrustworthiness€and€ability€to€protect€classified€or€sensitive€information.ðð€€This€quoted€sentence€is€from€the€revisedÐ üL Ðadjudicative€guidelines;€however,€this€sentence€is€identical€to€the€previous€version€except€for€the€addition€of€the€wordsÐ À Ðð ðor€sensitiveðð€near€its€end.€€€ Ý ƒ Íx$ÝÔUSUS.,ÔÔ€ô,òXXÔÓ  Óà  àòòÚ  Ú4Ú  ÚóóÝ  ÝÔ_Ô€In€appeal€brief,€Department€Counsel€notes€Applicant€filed€his€2013€Federal€income€tax€return€in€a€timelyÐ ° Ðmanner.€€ IÝ ƒ Íx$ÝÔUSUS.,ÔÔ€ô,òXXÔÓ  Óà  àòòÚ  Ú1Ú  ÚóóÝ  ÝÔ_Ô€This€decision€was€issued€three€days€before€a€revision€of€the€adjudicative€guidelines€became€effective.€€TheÐ ° Ðprevious€version€of€the€adjudicative€guidelines€that€the€Judge€applied€included€the€following€applicable€disqualifyingÐ tÄ Ðconditions:€€ðððð€19(a)€ð ðinability€or€unwillingness€to€satisfy€debts;ðð€19Ô_Ô(c)Ô_Ô€ð ða€history€of€not€meeting€financial€obligations;ððÐ 8ˆ Ðand€19(g)€ð ðfailure€to€file€annual€Federal,€state,€or€local€income€tax€returns€as€required€or€the€fraudulent€filing€of€theÐ üL Ðsame.ðð€€The€current€Directive€contains€similar€disqualifying€conditions.€€òòSeeóó€Directive,€Encl.€2,€App.€A€ðððð€19(a)Ð À Ðð ðinability€to€satisfy€debts;ðð€19(b)€ð ðunwillingness€to€satisfy€debts€regardless€of€the€ability€to€do€so;ðð€19Ô_Ô(c)Ô_Ô€ð ð€a€history€ofÐ „Ô Ðnot€meeting€financial€obligations;ðð€and€19(f)€ð ðfailure€to€file€or€fraudulently€filing€annual€Federal,€state,€or€local€incomeÐ H ˜ Ðtax€returns€or€failure€to€pay€annual€Federal,€state,€or€local€taxes€as€required[.]ððÐ  \ ÐÌ tÝ ƒ Íx$ÝÔUSUS.,ÔÔ€ô,òXXÔÓ  Óà  àòòÚ  Ú8Ú  ÚóóÝ  ÝÔ_Ô€In€the€Reply€Brief,€Applicant€presented€documents€not€previously€submitted€to€the€Judge€for€consideration.€Ð ° ÐThe€Appeal€Board€is€prohibited€from€considering€new€evidence€on€appeal.€€Directive,€ðð€E3.1.29.€€ }Ý ƒ Íx$ÝÔUSUS.,ÔÔ€ô,òXXÔÓ  Óà  àòòÚ  Ú2Ú  ÚóóÝ  ÝÔ_Ô€In€the€appeal€brief,€Department€Counsel€raises€no€issues€or€arguments€addressing€the€Judgeððs€favorable€findingÐ ° Ðregarding€the€two€consumer€debts€alleged€in€Ô_ÔSORÔ_Ô€ðððð€1.c€and€1.d.€Level 1Level 2Level 3Level 4Level 5 ËÝ ƒ Íx$ÝÔUSUS.,ÔÔ€ô,òXXÔÓ  Óà  àòòÚ  Ú7Ú  ÚóóÝ  ÝÔ_Ô€In€the€past,€the€Appeal€Board€has€held€that€it€is€reasonable€for€a€Judge€to€expect€applicants€to€presentÐ ° Ðdocumentation€about€efforts€taken€to€resolve€financial€problems.€€òòSee,€e.g.óó,€Ô_ÔISCRÔ_Ô€Case€No.€07„10310€at€2€(App.€Bd.€Jul.Ð tÄ Ð30,€2008).€ rÝ ƒ Íx$ÝÔUSUS.,ÔÔ€ô,òXXÔÓ  Óà  àòòÚ  Ú6Ú  ÚóóÝ  ÝÔ_Ô€We€note€that€the€€revised€adjudicative€guideline€contains€a€new€mitigating€condition€that€addresses€tax€issues.€Ð ° ÐòòóóDirective,€Encl.€2,€App.€A,€ðð€20(g)€that€states,€ð ðthe€individual€has€made€arrangements€with€the€appropriate€tax€authorityÐ tÄ Ðto€file€or€pay€the€amount€owed€and€is€in€compliance€with€those€arrangements.ðð€€Since€Applicant€presented€no€proof€ofÐ 8ˆ Ðpayments€under€the€IRS€installment€agreement€before€the€record€closed,€he€has€not€met€the€requirement€of€the€secondÐ üL Ðprong€of€that€mitigating€condition.€€Therefore,€remanding€the€decision€to€the€Judge€for€consideration€of€this€newÐ À Ðmitigating€condition€is€not€warranted.€€ ÞÝ ƒ Íx$ÝÔUSUS.,ÔÔ€ô,òXXÔÓ  Óà  àòòÚ  Ú9Ú  ÚóóÝ  ÝÔ_Ô€The€tax€year€for€which€the€refund€applies€is€not€specified€in€the€document.€€(ÍO$——ÔÿÔòòóóÔÿÔ Ý ƒ Íx$ÝÔUSUS.,ÔÔ€ô,òXXÔÓ  Óà  àòòÚ  Ú5Ú  ÚóóÝ  ÝÔ_Ô€In€recent€years,€for€example,€the€Federal€tax€rates€had€ranged€between€10%€and€39.6%€depending€on€anÐ ° Ðindividualððs€income.€€òòSeeóó,€Ô4‚Ý Œ ÔÝ‚ÍOÝÔÿÔòòÝ  ÝÔ5  ÔÔÿÔhttps://www.irs.com/articles/2014-federal-tax-rates-Ô6.ÔÝ‚ÍOBƒÝóóÔÔÝ  ÝÔ7Ý pÔòòpersonal-exemptions-and-standard-Ð tÄ Ðdeductionsóó.€€In€2012,€the€Federal€income€tax€rates€ranged€between€10%€and€35%.€€òòSeeóó,€Ô4‚ Ý æÔÝ‚ÍOÝÔÿÔòòÝ  ÝÔ5  ÔÔÿÿzÔÔÿÔhttps://www.irs.gov/Ô6®ÔÝ‚ÍOƒÝóóÔÔÝ  ÝÔ7Ý .#ðÔÐ 8ˆ Ðòòpub/Ô_ÔirsÔ_Ô-prior/i1040tt--2012.Ô_ÔpdfÔ_Ôóó.https://www.irs.com/articles/2014-federal-tax-rates-https://www.irs.gov/ d[\]^`Eþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(.3½Þ$¢¢Ý ƒüœ!ÝÔUSUS.,ÔÝ  Ý(.3½Þ$££Ý ƒüœ!ÝÔUSUS.,ÔÝ  Ý($$””ò òÚ  Ú1Ú  Úó óVVVV)ÿÿ!dxdxÝ ƒüœ!ÝÔUSUS.,ÔÝ  ÝÔ_ÔKEYWORD:€Guideline€FÐ ° ÐÌDIGEST:€From€2009€to€2013,€Applicant€did€not€have€any€Federal€or€state€taxes€withheld€andÐ ˆØ Ðalso€did€not€file€Federal€or€state€income€tax€returns.€IRS€filed€a€tax€lien€against€Applicant€forÐ tÄ Ðabout€$98,000,€and€he€established€Ô_ÔanÔ_Ô€installment€agreement€with€the€IRS€in€which€he€agreed€toÐ `° Ðpay€$66€per€month€on€his€Federal€tax€debt€for€2009„2013.€Decision€reversed.Ð L œ ÐÌÔ_ÔCASENOÔ_Ô:€15„05478.a1Ð $ t ÐÌDATE:€10/2/2017Ð ü L  ÐÌà  àà ` àà ¸ àà  àà h àà À àà  àà p àDATE:€October€2,€2017€€€€Ð Ô$  ÐÌÌÌÒ.؉ð7r°(#°(#.ÒßA€V) °°xdE°ƒgAßÐ „Ô  ÐÌIn€Re:Ð Ï ÐÌà  à„„„„„„„„„„„„„„„„Ìà  àÌÌApplicant€for€Security€ClearanceÐ k ÐÌßA€V) °°xdE°ògAßÐ óC Ð)Ð „Ô  Ð)Ð pÀ Ð)Ð \¬ Ð)Ð H˜ Ð)Ð 4„ Ð)Ð  p Ð)Ð  \ Ð)Ð øH ÐÐ ä4  ÐÓp°œXÓÌÌÌà p àÔ_ÔISCRÔ_Ô€Case€No.€15„05478Ð H˜# ÐÐ 4„$ ÐÒ.؉ð7r°°.ÒÓ °\X›XpÓÐ ¼ $ Ðò òÓ  ÓAPPEAL€BOARD€DECISIONÐ ¨ø% ÐÌÌòòAPPEARANCESóóÐ l¼( Ðó óÌÔ‡&ðk%XXÔò òFOR€GOVERNMENTó óÐ D!”* ÐJohn€Ô_ÔBayardÔ_Ô€Ô_ÔGlendonÔ_Ô,€Esq.,€Deputy€Chief€Department€CounselÐ "l+ ÐÌò òFOR€APPLICANTó óÐ Ì#- Ðò òòòPro€seóóó óÔ#†XÿxX%&ðk«#ÔÐ ¤$ô. ÐÌÌÓ  Óà  àThe€Department€of€Defense€(DoD)€declined€to€grant€Applicant€a€security€clearance.€€On€MayÐ R'¢"1 Ð16,€2016,€DoD€issued€a€statement€of€reasons€(SOR)€advising€Applicant€of€the€basis€for€thatÐ >(Ž#2 Ðdecisionð!ðsecurity€concerns€raised€under€Guideline€F€(Financial€Considerations)€of€Department€ofÐ *)z$3 ÐDefense€Directive€5220.6€(Jan.€2,€1992,€as€amended)€(Directive).€€Applicant€requested€a€decisionÐ *f%4 Ðon€the€written€record.€€On€June€5,€2017,€after€considering€the€record,€Defense€Office€of€Hearings€andÐ +R&5 ÐAppeals€(DOHA)€Administrative€Judge€Robert€Robinson€Gales€granted€Applicantððs€request€for€aÐ î+>'6 Ðsecurity€clearance.€€Department€Counsel€appealed€pursuant€to€Directive€ðððð€E3.1.28€and€E3.1.30.Ð Ú,*(7 Ðà  àà ` àÐ Æ-)8 Ðà  àDepartment€Counsel€raised€the€following€issue€on€appeal:€€whether€the€Judgeððs€decision€wasÐ ° Ðarbitrary,€capricious,€or€contrary€to€law.€€Consistent€with€the€following,€we€reverse.Ð œì Ðà  àÌÌà  àò òThe€Judgeððs€Findings€of€Fact€ó ó€Ð `° ÐÌà  àApplicant€is€a€54„year„old€financial€planner€who€has€been€working€for€a€defense€contractorÐ < Œ Ðsince€1987.€€From€2005€to€2011,€he€also€worked€part„time€as€a€real€estate€agent.€€He€earned€aÐ ( x Ðmasterððs€degree€in€1997€and€was€granted€a€security€clearance€in€2005.Ð  d ÐÌà  àApplicant€attributes€his€financial€problems€to€the€collapse€of€the€real€estate€market€in€2008.Ð ì <  ÐHe€had€a€rental€property€that€became€vacant€for€a€few€months€that€caused€him€to€lower€the€rent.€Ð Ø(  ÐIncome€from€his€real€estate€activities,€which€accounted€for€about€25%€of€his€total€income,Ð Ä  Ðdisappeared.€€Accounts,€including€his€mortgage,€became€delinquent.€€His€pay€was€garnished.€€WhileÐ °  Ðhe€was€able€to€settle€a€number€of€accounts€for€less€than€the€full€balance,€others€were€charged€off€orÐ œì  Ðsold€to€collectors.€€Ð ˆØ  ÐÌà  àFrom€2009€to€2013,€Applicant€did€not€have€any€Federal€or€state€taxes€withheld€ð ðbecause€heÐ `° Ðhad€insufficient€funds€available€to€pay€his€income€taxesðð€(Decision€at€3)€and€also€did€not€file€FederalÐ Lœ Ðor€state€income€tax€returns.€€He€hired€a€tax€preparation€firm€and€legal€representation€to€assist€him.€Ð 8ˆ ÐHe€filed€his€Federal€income€tax€returns€for€2009„2013€on€April€11,€2014.€€For€those€years,€his€annualÐ $t Ðadjusted€gross€income€ranged€from€about€$90,000€to€€$110,000.€€In€early€2015,€the€Internal€RevenueÐ ` ÐService€(IRS)€filed€a€tax€lien€against€Applicant€for€about€$98,000,€and€he€established€a€installmentÐ üL Ðagreement€with€the€IRS€in€which€he€agreed€to€pay€$66€per€month€on€his€Federal€tax€debt€for€2009„Ð è8 Ð2013.€€ð ðWhile€Applicant€failed€to€submit€any€documentation€to€support€his€contention€that€he€hasÐ Ô$ Ða€history€of€20€months€(as€of€September€2016)€of€making€his€monthly€payments,€based€on€his€overallÐ À Ðactions€in€resolving€various€accounts,€I€am€confident€that€he€has€made€his€modest€monthlyÐ ¬ü Ðpayments.ðð€€Decision€at€3.€€Ð ˜è ÐÌà  àApplicant€contends€that€he€filed€his€state€income€tax€returns€and€paid€all€of€his€state€incomeÐ pÀ Ðtaxes€for€the€years€in€question,€but€failed€to€submit€any€documentation€to€support€that€contention.€Ð \ ¬ ÐHowever,€he€was€issued€a€state€tax€refund€in€2015.€Ð H!˜ ÐÌà  àApplicant€had€an€unpaid€balance€of€$166€on€a€department€store€charge€card.€€He€claimed€theÐ  #p! Ðaccount€was€resolved€several€years€ago,€but€failed€to€submit€supporting€documentation.€€While€theÐ  $\" Ðaccount€has€not€been€resolved,€it€is€of€little€security€significance.Ð ø$H # ÐÌà  àApplicant€also€had€an€automobile€loan€that€was€past„due€about€$600€with€an€unpaid€balanceÐ Ð& "% Ðof€about€$27,000.€€In€his€Ô_ÔSORÔ_Ô€response,€Applicant€indicated€the€automobile€was€involved€in€anÐ ¼' #& Ðaccident€and€delays€in€insurance€payments€occurred.€€He€denied€the€loan€went€into€default€and€statedÐ ¨(ø#' Ðthe€account€was€paid€in€July€2015.€€€Ð ”)ä$( ÐÌà  àApplicant€did€not€present€a€budget€or€other€information€that€showed€his€monthly€Ô_Ôincome,Ô_ÔÐ l+¼&* Ðexpenses,€and€net€monthly€remainder.€€Besides€information€about€him€seeking€tax€assistance,€heÐ X,¨'+ Ðpresented€no€evidence€of€financial€counseling.€€There€is€no€evidence€of€any€other€delinquentÐ D-”(, Ðaccounts.€€His€finances€improved€in€2014€and€now€seem€to€be€under€control.€€Ð ° Ðà  àÌÌà  àò òThe€Judgeððs€Analysisó óÐ tÄ Ðà  àÌà  àThe€evidence€established€disqualifying€conditions€19(a),€19(c),€and€19(g).׃×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€ApplicantððsÐ L œ Ðfinancial€difficulties€were€attributable€to€the€national€economic€recession€during€2007„2009,€whichÐ 8 ˆ Ðhad€a€continuing€negative€impact€over€the€ensuing€years.€€He€was€unable€to€keep€his€accounts€currentÐ $ t Ðor€pay€his€taxes.€€He€reached€out€to€creditors€in€a€good„faith€effort€to€resolve€the€debts€and€was€ableÐ  ` Ðto€resolve€a€significant€number€of€debts,€file€his€Federal€income€tax€returns,€and€establish€anÐ ü L  Ðinstallment€agreement€with€the€IRS.€€He€commenced€a€long€road€to€recovery€before€the€SOR€wasÐ è 8  Ðissued€and€is€making€positive€efforts€to€resolve€his€debts.€€ð ðDespite€the€absence€of€any€financialÐ Ô$  Ðdocumentation€from€Applicant€regarding€his€current€finances,€it€is€still€possible€to€conclude€that€hisÐ À  Ðfinancial€problems€are€under€control.ðð€€Decision€at€7.€€In€the€whole„person€analysis,€the€Judge€statedÐ ¬ü  Ðthat€Applicant€was€making€positive€efforts€to€resolve€his€debts.Ð ˜è  Ðà  àÌà  àò òDiscussionó óÐ pÀ Ðà  àà ` àÌà  àA€Judge€is€required€to€ð ðexamine€the€relevant€data€and€articulate€a€satisfactory€explanationÐ H˜ Ðforðð€the€decision,€ð ðincluding€a€ððrational€connection€between€the€facts€found€and€the€choice€made.ððððÐ 4„ ÐòòMotor€Vehicle€Mfrs.€Assððn€of€the€United€States€v.€State€Farm€Mut.€Auto€Ins.€Co.óó,€463€U.S.€29,€43Ð  p Ð(1983)(quoting€òòBurlington€Truck€Lines,€Inc.€v.€United€Statesóó,€371,€U.S.€156,€168€(1962)).€€ð ðTheÐ  \ Ðgeneral€standard€is€that€a€clearance€may€be€granted€only€when€ððclearly€consistent€with€the€interestsÐ øH Ðof€the€national€security.ðððð€€€òòDepartment€of€the€Navy€v.€Eganóó,€484€U.S.€518,€528€(1988).€€ð ðAny€doubt€Ð ä4 Ðconcerning€personnel€being€considered€for€national€security€eligibility€will€be€resolved€in€favor€ofÐ Ð  Ðthe€national€security.ðð€€Directive,€Encl.€2,€App.€ðð€2(b).€€The€Appeal€Board€may€reverse€the€JudgeððsÐ ¼  Ðdecision€to€grant,€deny,€or€revoke€a€security€clearance€if€it€is€arbitrary,€capricious,€or€contrary€to€law.€Ð ¨ø ÐDirective€ðððð€E3.1.32.3€and€E3.1.33.3.Ð ”ä ÐÌà  àThere€is€a€strong€presumption€against€the€grant€or€maintenance€of€a€security€clearance.€€òòSeeóóÐ l¼ ÐòòDorfmont€v.€Brownóó,€913€F.€2d€1399,€1401€(9òòthóó€Cir.€1990),€òòcert.€denied,€óó499€U.S.€905€(1991).€€AfterÐ X ¨ Ðthe€Government€presents€evidence€raising€security€concerns,€the€burden€shifts€to€the€applicant€toÐ D!” Ðrebut€or€mitigate€those€concerns.€€òòSeeóó€Directive€ðð€E3.1.15.€€ð ðThe€application€of€disqualifying€andÐ 0"€  Ðmitigating€conditions€and€whole€person€factors€does€not€turn€simply€on€a€finding€that€one€or€moreÐ #l! Ðof€them€apply€to€the€particular€facts€of€a€case.€€Rather,€their€application€requires€the€exercise€ofÐ $X" Ðsound€discretion€in€light€of€the€record€evidence€as€a€whole.ðð€€òòSee,€e.g.,óó€ISCR€Case€No.€05„03635€atÐ ° Ð3€(App.€Bd.€Dec.€20,€2006).Ð œì ÐÌà  àIn€deciding€whether€the€Judgeððs€rulings€or€conclusions€are€erroneous,€we€will€review€theÐ tÄ ÐJudgeððs€decision€to€determine€whether:€€it€does€not€examine€relevant€evidence;€it€fails€to€articulateÐ `° Ða€satisfactory€explanation€for€its€conclusions,€including€a€rational€connection€between€the€facts€foundÐ L œ Ðand€the€choice€made;€it€does€not€consider€relevant€factors;€it€reflects€a€clear€error€of€judgment;€it€failsÐ 8 ˆ Ðto€consider€an€important€aspect€of€the€case;€it€offers€an€explanation€for€the€decision€that€runs€contraryÐ $ t Ðto€the€record€evidence;€or€it€is€so€implausible€that€it€cannot€be€ascribed€to€a€mere€difference€ofÐ  ` Ðopinion.€€òòSee,€e.g.óó,€Ô_ÔISCRÔ_Ô€Case€No.€14„02563€at€3„4€(App.€Bd.€Aug.€28,€2015).Ð ü L  Ðà  àÌà  àDepartment€Counsel€argues€that€the€limited€record€in€this€case€does€not€support€the€JudgeððsÐ Ô$  Ðfavorable€mitigation€and€whole„person€analysis.€€Department€Counsel€contends€that€the€Judge€erredÐ À  Ðin€his€assessment€of€the€security€significance€of€Applicantððs€Federal€and€state€tax€problems€as€wellÐ ¬ü  Ðas€in€his€evaluation€of€Applicantððs€actions€in€addressing€those€problems.׃×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ׀Р˜è  Ðà  àÌà  àA€security€clearance€represents€an€obligation€to€the€Federal€Government€to€protect€nationalÐ pÀ Ðsecrets.€€Accordingly,€failure€to€honor€other€obligations€to€the€Government€has€a€direct€bearing€onÐ \¬ Ðassessing€an€applicantððs€reliability,€trustworthiness,€and€ability€to€protect€classified€information.€€òòSee,Ð H˜ Ðe.g.,€óóÔ_ÔISCRÔ_Ô€Case€No.€14„03358€at€3€(App.€Bd.€Oct.€9,€2015)òò.óó׃×Ý ƒ#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€€A€person€who€fails€repeatedly€to€fulfillÐ 4„ Ðhis€or€her€legal€obligations,€such€as€filing€and€paying€taxes€when€due,€does€not€demonstrate€the€highÐ  p Ðdegree€of€judgment€and€reliability€required€of€those€granted€access€to€classified€information.€€òòSee,Ð  \ Ðe.g.óó,€€ISCR€Case€No.€14„04159€at€3€(App.€Bd.€Aug.€1,€2016).€€In€this€case,€Applicant€failed€to€fileÐ øH Ðhis€2009„2012€Federal€or€state€income€tax€returns€in€a€timely€manner׃x×Ý ƒ#ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×€and€failed€to€pay€his€2009„Ð ä4 Ð2013€Federal€income€taxes€as€required,€which€resulted€in€a€$98,000€Federal€tax€lien.€€His€2009Ð Ð  ÐFederal€income€tax€return€was€filed€about€four€Ô_ÔyearsÔ_Ô€late.€€These€failures€to€comply€with€Federal€andÐ ¼  Ðstate€tax€laws€suggest€that€Applicant€has€a€problem€with€voluntarily€abiding€by€well„establishedÐ ¨ø Ðgovernment€rules€and€regulations,€which€calls€into€question€his€suitability€for€a€security€clearance.€Ð ”ä ÐòòSee,€e.g.óó,€Ô_ÔISCRÔ_Ô€Case€No.€14„04437€at€3€(App.€Bd.€Apr.€15,€2016).€€€€€Ð €Ð Ðà  àÌà  àTurning€to€the€issue€of€mitigation,€we€find€persuasive€Department€Counselððs€argument€thatÐ X ¨ ÐApplicant€has€not€supplied€enough€evidence€to€meet€his€burden€of€persuasion€under€the€òòEganóóÐ D!” Ðstandard.€€Department€Counsel€asserts€the€Judge€erred€in€finding€that€Applicant€had€insufficientÐ 0"€  Ðfunds€available€to€pay€his€income€taxes.€€It€is€axiomatic€that€the€amount€of€income€taxes€imposedÐ #l! Ðover€a€given€period€never€exceeds€a€certain€percentage€of€the€income€earned.Ô_Ô׃×Ý ƒ#ÃÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ×Ô_Ô€€In€his€securityÐ ° Ðclearance€application€(Ô_ÔSCAÔ_Ô)€and€Ô_ÔSORÔ_Ô€response,€Applicant€indicated€that€he€reduced€his€Federal€andÐ œì Ðstate€tax€withholdings€to€settle€debts€and€mitigate€the€effects€of€garnishments.€€His€hope€was€that,Ð ˆØ Ðafter€reducing€his€tax€withholding€in€2009,€he€would€be€able€to€bounce€back€financially€the€followingÐ tÄ Ðyear.€€This€approach€did€not€work€and€he€did€not€have€sufficient€Federal€and€state€tax€withholdingsÐ `° Ðtaken€from€his€pay€for€2009„2013.€€Department€Counsel€convincingly€argues€that€the€Federal€taxÐ L œ Ðdebt€was€the€result€of€Applicantððs€choice€to€reduce€his€tax€withholdings€over€several€years,€and€hisÐ 8 ˆ Ðdecision€to€prioritize€the€payment€of€other€expenses€over€his€legal€obligation€to€pay€his€taxes.€€GivenÐ $ t Ðthese€circumstances,€the€Judgeððs€conclusion€that€Applicant€was€unable€to€pay€his€Federal€and€stateÐ  ` Ðincome€taxes€(Decision€at€7)€is€not€supportable.Ð ü L  ÐÌà  àDepartment€Counsel€also€argues€that€the€Judgeððs€analysis€of€the€timing€of€Applicantððs€actionsÐ Ô$  Ðin€attempting€to€resolve€his€tax€problems€is€flawed.€€The€Judge€emphasized€that€Applicant€filed€hisÐ À  ÐFederal€tax€returns€about€a€year€before€the€Ô_ÔSORÔ_Ô€was€issued.€€However,€the€record€reflects€thatÐ ¬ü  ÐApplicant€did€not€file€those€tax€returns€until€after€he€submitted€his€Ô_ÔSCAÔ_Ô€and€underwent€hisÐ ˜è  Ðbackground€interview.€€òòSee,€e.g.óó,€Ô_ÔISCRÔ_Ô€Case€No.€14„00279€at€3€(App.€Bd.€Jan.€23,€2015)€for€theÐ „Ô  Ðproposition€that€the€timing€of€the€resolution€of€financial€problems€is€a€relevant€factor€in€evaluatingÐ pÀ Ðan€applicantððs€case€for€mitigation€of€Guideline€F€concerns.€€The€reason€that€timing€is€important€isÐ \¬ Ðthat€an€applicant€who€begins€to€resolve€financial€problems€only€after€being€placed€on€notice€that€hisÐ H˜ Ðclearance€was€in€jeopardy€may€lack€the€judgment€and€self„discipline€to€follow€rules€and€regulationsÐ 4„ Ðover€time€or€when€there€is€no€immediate€threat€to€his€own€interests.€€In€this€case,€Applicantððs€filingÐ  p Ðof€his€Federal€income€tax€returns€for€2009„2012€after€submitting€his€Ô_ÔSCAÔ_Ô€and€undergoing€hisÐ  \ Ðbackground€interview€diminishes€the€weight€to€which€such€remedial€action€might€otherwise€haveÐ øH Ðmeritedòò.€€óóÐ ä4 ÐÌà  àThe€lack€of€corroboration€of€Applicantððs€statements€about€his€actions€in€mitigation€is€anÐ ¼  Ðadditional€consideration€in€this€case.€€It€is€clear€from€statements€by€the€Judge€in€the€decision€that€heÐ ¨ø Ðacknowledged€Applicantððs€lack€of€corroboration€in€key€areas.€€First,€while€Applicant€submitted€aÐ ”ä Ðcopy€of€his€IRS€installment€agreement€in€his€response€to€the€Ô_ÔSORÔ_Ô,€he€did€not€submit€proof€that€heÐ €Ð Ðmade€any€installment€payments€during€the€20€months€between€the€date€of€the€installment€agreementÐ l¼ Ðâ âand€his€response€to€the€File€of€Relevant€Material€(FORM).׃ ×Ý ƒ#ÃÝòòÚ  Ú6Ú  ÚóóÝ  Ý×  ×€€Notwithstanding€this€lack€ofÐ X ¨ Ðcorroboration,€the€Judge€stated€that€he€was€ð ðconfidentðð€Applicant€made€those€monthly€payments.Ô_Ô׃×Ý ƒ#ÃÝòòÚ  Ú7Ú  ÚóóÝ  Ý×  ×Ô_ԀР° Ðâ âThis€lack€of€corroboration€undercuts€the€Judgeððs€determination€that€Applicant€has€demonstrated€aÐ œì Ðð ðððmeaningful€track€recordðð€of€debt€reduction.ðð€€Decision€at€10.€€In€the€past,€the€Appeal€Board€hasÐ ˆØ Ðstated€that€a€ð ðmeaningful€track€record€of€debt€reductionðð€generally€includes€establishing€a€plan€toÐ tÄ Ðresolve€financial€problems€and€taking€significant€action€to€implement€that€plan.€€òòSee,€e.g.óó,€Ô_ÔISCRÔ_Ô€CaseÐ `° ÐNo.€07„06482€at€2€(App.€Bd.€May€21,€2008).€€In€this€case,€Applicant€had€not€provided€corroboratingÐ L œ Ðdocumentary€evidence€that€he€has€taken€significant€timely€action€to€implement€the€IRS€installmentÐ 8 ˆ Ðagreement.׃Ü×Ý ƒ#ÃÝòòÚ  Ú8Ú  ÚóóÝ  Ý×  ×€€Second,€Applicant€did€not€submit€his€state€income€tax€returns€in€either€responding€toÐ $ t Ðthe€Ô_ÔSORÔ_Ô€or€the€FORM.€€The€only€documentary€evidence€to€support€Applicantððs€contention€that€heÐ  ` Ðfiled€his€2009„2013€state€income€tax€returns€is€a€copy€of€a€state€income€tax€refund€dated€AugustÐ ü L  Ð2015.׃,×Ý ƒ#ÃÝòòÚ  Ú9Ú  ÚóóÝ  Ý×  ×€The€record€contains€no€documentary€evidence€confirming€when€his€2009„2013€state€incomeÐ è 8  Ðtax€returns€were€filed.€€The€absence€of€such€proof,€including€documentary€proof€that€he€filed€hisÐ Ô$  Ð2014€and€2015€Federal€and€state€income€tax€returns,€undermines€the€Judgeððs€conclusion€thatÐ À  ÐApplicant€ð ðhas€now€embraced€the€paradigm€of€timely€filing€income€tax€returns.ðð€€Decision€at€9.€€Ð ¬ü  Ðà  àà ` àà ¸ àà  àÌà  àAdditionally,€Department€Counsel€challenges€the€Judgeððs€conclusion€that€ApplicantððsÐ „Ô  Ðð ðfinancial€problems€are€under€control.ðð€€Decision€at€7.€€Department€Counsel€correctly€points€out€thatÐ pÀ Ðthe€record€contains€no€evidence€of€Applicantððs€personal€financial€information€such€as€a€budget.€Ð \¬ ÐSpecifically,€there€is€no€information€in€the€record€about€his€monthly€expenses.€€Additionally,€theÐ H˜ ÐJudgeððs€statement€that€Applicant€has€no€other€delinquent€debts€(Decision€at€10)€€is€contradicted€byÐ 4„ Ðrecord€evidence.€€Applicantððs€most€recent€credit€report€in€the€record,€which€is€dated€March€2016,Ð  p Ðreflects€that€he€had€two€non„alleged€accounts€that€became€delinquent€in€late€2015€and€early€2016€andÐ  \ Ðthat€he€had€a€non„alleged€second€mortgage€that€was€charged„off€for€about€$67,000.€€The€recordÐ øH Ðcontains€no€evidence€these€non„alleged€debts€were€resolved.€€The€Judgeððs€failure€to€address€the€non„Ð ä4 Ðalleged€debts€in€the€decision€impairs€his€mitigation€and€whole„person€analysis.€€In€short,€the€recordÐ Ð  Ðevidence€does€not€support€the€Judgeððs€conclusion€that€Applicantððs€financial€problems€are€underÐ ¼  Ðcontrol.Ð ¨ø ÐÌà  à€Furthermore,€Department€Counsel€maintains€that€the€Judgeððs€analysis€under€the€whole„Ð €Ð Ðperson€concept€is€erroneous.€€Department€Counsel€notes€that€analysis€references€no€additional€factsÐ l¼ Ðor€reasons€why€the€limited€record€in€this€case€supports€a€favorable€decision.€€Of€note,€ApplicantÐ X ¨ Ðpresented€no€character€reference€letters€or€work€performance€evaluations.€€The€whole„personÐ D!” Ðevidence€presented€consists€of€Applicantððs€statements€about€himself€in€his€Ô_ÔSCAÔ_Ô,€his€Ô_ÔSORÔ_Ô€response,Ð 0"€  Ðand€his€FORM€response.€€Thus,€the€Judgeððs€whole„person€analysis€essentially€is€a€repetition€of€hisÐ #l! Ðmitigation€analysis,€which€for€the€reasons€stated€above€was€flawed.€€Ð $X" ÐÌà  àWe€conclude€that€the€Judgeððs€decision€failed€to€consider€important€aspects€of€the€case,€failedÐ à%0!$ Ðto€provide€an€satisfactory€explanation€for€its€conclusions,€and€runs€contrary€to€the€weight€of€theÐ ° Ðrecord€evidence.€€Furthermore,€we€conclude€that€the€record€evidence,€viewed€as€a€whole,€is€notÐ œì Ðsufficient€to€mitigate€the€Governmentððs€security€concerns€under€the€òòEgan€óóstandard.€Ð ˆØ Ðà@ìì*ìàˆÌà@ââ(ìàà@@(àò òOrderó óˆÐ `° ÐÌà  àThe€Decision€is€ò òREVERSEDó ó.€€Ð 8 ˆ ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àòòSigned:€Michael€Ô_ÔRaððananÔ_Ô€€€€€€€€€óóÐ ì <  Ðà  àà ` àà ¸ àà  àà h àà À àMichael€RaððananÐ Ø(  Ðà  àà ` àà ¸ àà  àà h àà À àAdministrative€JudgeÐ Ä  Ðà  àà ` àà ¸ àà  àà h àà À àMember,€Appeal€BoardÐ °  ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àòòSigned:€James€E.€Moody€€€€€€€€€€óóÐ `° Ðà  àà ` àà ¸ àà  àà h àà À àJames€E.€MoodyÐ Lœ Ðà  àà ` àà ¸ àà  àà h àà À àAdministrative€JudgeÐ 8ˆ Ðà  àà ` àà ¸ àà  àà h àà À àMember,€Appeal€BoardÐ $t ÐÌà  àà ` àà ¸ àà  àÌÌà  àà ` àà ¸ àà  àà h àà À àòòSigned:€James€F.€Duffy€€€€€€€€€€€Ô_ÔóóÔ_ÔÐ Ô$ Ðà  àà ` àà ¸ àà  àà h àà À àJames€F.€DuffyÐ À Ðà  àà ` àà ¸ àà  àà h àà À àAdministrative€JudgeÐ ¬ü Ðà  àà ` àà ¸ àà  àà h àà À àMember,€Appeal€Ô_ÔBoardÔ_ÔÔ_ÔÔ_Ô