SF85 and Reporting Tax Info

Hi All,

I have an SF 85P coming up. I have never filled one out for any previous employment opportunities, so curious about filling out some of the sections. Specifically, for reporting federal tax info. I filed on time by the deadline but was unable to pay my taxes owed by the deadline due to financial hardship and unemployment. I did however get on a payment plan and have been making active and regular payments. I owed ~$2k in income taxes. My plan is to pay in full as soon as I am employed whatever the remainder is. I have always filed on time and never owed taxes in the past either.

My question is, do I respond with a β€œyes” or a β€œno” to the question where it asks, β€œin the past 5 years have you failed to pay state/federal taxes.”

Will this impact my eligibility and background clearance?

I also have an expunged arrest record. I was unfortunately wrongfully arrested (a case of racial profiling and police brutality) in 2017. The original charges were reduced to a traffic ticket and all I had to do was pay a fine. My records ere then expunged. I understand I have to report that on the form but does that also impact my eligibility? I otherwise have a squeaky clean record.

TIA.

If you set up the payment plan for your taxes within the required timeframe for the IRS and made all payments on time, then you did not fail to pay. If you waited a year without making any payment arrangements and then decided maybe you should start paying on it, then you failed to pay.

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