US individuals and businesses may be required to disclose their foreign investments by filing a BE-10, Benchmark Survey of US Direct Investment Report Abroad (BE-10) with the US Commerce Department’s Bureau of Economic Analysis (BEA), depending on their reporting requirements. The BEA prepares official US economic statistics on investment in, and by, US companies based on data that it collects through mandatory surveys. The BE-10, a five-year benchmark survey, is a non-tax form (i.e., not an IRS form).
When are BE-10s due?
The deadline to file the BE-10 has been extended to June 30 from May 29 for US businesses with fewer than fifty foreign affiliates, for all new filers. The deadline for businesses with more than fifty affiliates is June 30. The BEA will generally grant reasonable requests for extensions if it receives such requests prior to the original deadline.
Who is required to file a BE-10?
All US persons that owned, directly or indirectly, 10 percent or more of the voting stock of a foreign corporation, or an equivalent interest in an unincorporated foreign business enterprise (e.g. a partnership), at any time during the 2014 fiscal year, are required to file a BE-10. For this purpose the term “US person” includes any individual, branch, partnership, association, estate, trust, corporation, or other organization that resides in, or is subject to the jurisdiction of, the United States.
Penalties for failure to file range from $2,500 to $25,000, plus an additional $10,000 penalty if failure to file is willful; penalty for a willful failure to file could also involve imprisonment for up to one year.
More information regarding the BE-10 report and the BE-10 instructions can be found on the BEA website.
For more information on this topic, or to learn how Baker Tilly tax specialists can help, contact our team.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.