We frequently discuss at ClearanceJobs that when it comes to Department of Defense (DoD) clearance holders or applicants, financial issues are the top cause of clearance denial or revocation. And tax issues are one of the recurring financial issues that come up year after year.

Here are three common issues that trip up both applicants and clearance holders.

Be sure to File.

This is by far the most common issue. Sometimes it’s willful failure, other times it’s sheer ignorance, but unfortunately for clearance holders, failure to know the law isn’t a very viable excuse. Many applicants fail to realize that just because they don’t owe any taxes doesn’t mean they don’t still have to file.

Report any issues.

Life happens. Some clearance holders find themselves facing estate issues, inheritance, property disputes, or other matters that make a straightforward filing difficult if not impossible. In these cases, reporting the issue to your security officer will help you to keep your clearance eligibility even as you deal with the tax man. And don’t let significant tax debt deter you. If you have a payment plan set up with the IRS or are taking mitigating steps to address your issues, that’s considered a positive.

include extra income.

Side hustles are growing in popularity (inflation, anyone?!). Clearance holders are required to report any outside activities (income), but they need to remember that they also need to report any additional income to the tax man. Failure to pay taxes on side income could cause clearance issues. 

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Lindy Kyzer is the director of content at ClearanceJobs.com. Have a conference, tip, or story idea to share? Email lindy.kyzer@clearancejobs.com. Interested in writing for ClearanceJobs.com? Learn more here.. @LindyKyzer