I was offered a job that requires a secret clearance. I’ve never had one before and am concerned about being eligible because of my current financial situation. I’ve gone through three layoffs in the past five years and my credit took a hit with some collection accounts. Other accounts were paid on time and remain current.
However, of more concern is that I filed a couple tax returns late and am paying off a tax bill. Are these reasons for automatic rejections? I need to move for this job and don’t want to take on that added expense only to lose the job in a few months, especially in this job market. Any advice or suggestions would be appreciated.
Not paying taxes is a big No-no! However, it sounds like you addressed it and are paying it now. Time should heal that. If it’s been at least a couple years, you can explain it on the form and to the BI. If it was more recent, then you might need more time to mitigate.
Debt is only an issue if you can’t address it or you’re ignoring it. If you’re making payments and are current on all of them, then it should not impact you. If you’re late or ignoring any bills or collections, then you should wait until you have resolved those.
Your finances are only an issue if it looks like you will be vulnerable to blackmail or manipulation. If it’s bad enough that you’re missing payments, then that could cause issues. But again, if you’re current with everything (even if it’s on payment programs), then you can explain on the form and to the BI.
Thank you for your response. Unfortunately not all of my debt is being addressed right now as I was unemployed for 10 months last year and only received unemplyment for 6 months, so no onvome at all for four months. I then worked a contract role for 7 months, but was very underpaid. It allowed me to pay down some things, but not all. The back taxes were in recent years (2022-2023) and were just filed recently. They had to be mailed so I have to wait for the IRS to enter the returns in the system before I can even request payments. I need this job to pay down all of this, but there’s no way I can get that done before they start the investigation.
You mention needing more time to mitigate or waiting. Are you saying it would likely be a denial and to try again at a later date? I would lose this job if denied and not sure when, or if l, there would be another time to receive an offer and be approved. Did I misunderstand what you meant though?
These are not reasons for rejections. Unlawful behavior and chronic lifestyle issues such as gambling and drug are reasons. Secret Clearances typically only require a background investigation and interview, no polygraphs.
With DOGE making its rounds I don’t know how solid government contracts are these days.
Not true at all. Failure to file, filing late or failure to pay your taxes on time can impact your clearance. Especially if they see a pattern. It’s on the SF86 for a reason. They are forgiving if you at least try to address it by requesting filing extensions or setting up payment plans and the like. But otherwise, yes, it can cause issues. Read this well known post by @Marko .
The finances are not that big of an issue. As long as you have documentation of unemployment and bills, you can explain to the investigators. Lack of employment can mitigate financial hardship.
Taxes are another matter. If you were late filing more than once and did not ask for extensions, that’s a problem. If you failed to pay what taxes you owed more than once and did not set up payment plans or at least reach out to IRS to discuss (you would need to document that), then that’s a problem too. If both those cases are true, that shows a pattern of poor judgement and your adjudication might be a struggle. They are sometimes more strict if it’s for federal employment than for contractors. So if you’re a contractor, you may still be able to get it, but… probably an uphill battle. If you can show that you did reach out to IRS and try to work with them, that would help a lot.
To clarify… I didn’t file 2022 and 2023 until last week because I knew I was going to owe money and I wasnt working and already owed a tax bill. I’m waiting for the IRS to enter the returns into their system and then will set up payment arrangements, but I will owe about $20k for 4 different years. Based on the post from Marko you shared, it sounds like this will be a denial even if they’re filed and a payment arrangement is set up.
The last five years have been a horrible job market and I cant believe I finally get an offer for a fill time role with a good company (it is a contractor) and now this will take it from me, the very thing I need to resolve it. I’m considering turning the offer down because I truly don’t want to start working there only to be let go for this weeks or months later after relocating. I wish there was a way to know in advance.
Before you give up, did you talk to the CSO or the recruiter about it yet? Did they ask you about it? Usually when you fill out the sf86, they review it and ask questions for clarity before they submit the package. When you put “didn’t file taxes for 4 years,” the CSO should have asked about that. Also again, it’s not as strict for contractors.