NEW REQUIREMENT FOR FOREIGN OWNED BUSINESSES
Every five years, the Bureau of Economic Analysis (BEA) conducts a benchmark survey of U.S. direct investments abroad via Form BE-10. The survey collects confidential economic data on operations of U.S. parent companies and their foreign affiliates, and the BEA uses the survey results to produce comprehensive statistics on U.S. direct investments abroad.
The BEA has extended the mandatory Form BE-10 filing deadline to June 30, 2015, for all first-time filers. If you were contacted by BEA to file this form in 2009, then you would not be considered a first-time filer, which means your deadline to file the 2014 form was May 29, 2015.
Any U.S. person who had a direct or indirect ownership of at least 10% of the voting stock of an incorporated foreign business or an equivalent interest in an unincorporated foreign business enterprise during 2014 must file a Form BE-10. A "U.S. person" includes an individual, branch, partnership, associated group, association, estate, trust, corporation, other organization or government that resides in the United States or is subject to U.S. jurisdiction. For the purposes of this filing, a party who is required to report on Form BE-10 is referred to as a "U.S. reporter."
In addition, any U.S. person notified by the Bureau of Economic Analysis about the need to file the survey form must either: 1) report any foreign affiliate interests as explained above or 2) file a Form BE-10 "Claim for Not Filing" informing the BEA that they do not have a foreign affiliate.
If you fail to comply with the Form BE-10 reporting requirement for the survey, you could face civil penalties ranging from $2,500 to $25,000. A willful violation could result in a $10,000 penalty and/or imprisonment of up to one year. An officer, director, employee or agent of any corporation who knowingly participates in a willful violation may likewise be subject to fines and/or imprisonment.
You can download the form, see government instructions, and file online at the BEA website or call 202-606-5566 to speak to Bureau of Economic Analysis staff. Visit http://www.bea.gov/surveys/respondent_be10.htm to learn more.
If you have any questions regarding this filing or need assistance, please contact us at 954-332-1345.