How Advisors Protect Themselves by Informing Clients

Offshore Tax with HTJ.tax · Oct 3, 2025 · 7m

When does technical advice cross into criminal risk—and how can advisors protect themselves?If an advisor tells a U.S. client:“Yes, Svalbard’s unique status means a financial institution there may not report to the IRS under FATCA. But this does not eliminate your personal obligations. You must still report on FBAR, Form 8938, and Forms 3520/3520-A—and failure to file carries severe penalties.”That advice is accurate, complete, and defensible. The advisor is informing, not concealing. The key element of willfulness—intent to defraud—is missing.But even with compliant advice, risks…