What is BE-10?
BE-10 is a mandatory survey by the U.S. Department of Commerce Bureau of Economic Analysis (“BEA”) which requires disclosure of certain U.S. direct or indirect investment in foreign countries. You are required to participate in this survey once every five years.
Who must file?
A U.S. Reporter (i.e. individual, company, trust, estate or non-profit entity) who has ownership or control of at least 10 percent of the voting stock of a foreign enterprise, incorporated or unincorporated, at any time during the 2014 tax year is required to file BE-10. This includes private funds that hold foreign investments. A U.S. Reporter who is contacted by the BEA but does not have a filing requirement is also required to file a “BE-10 Claim for Not Filing”.
When is the filing deadline?
First time filers must file by June 30, 2015. Other U.S. Reporters who previously filed BE-10 and are required to file fewer than 50 forms must have filed by May 29, 2015. U.S. Reporters who are required to file 50 or more forms are required to file by June 30, 2015.
What is the late filing penalty?
BEA can impose civil penalties ranging from $2,500 – $25,000 for U.S. Reporters who have failed to file BE-10 timely. Any officer, director, employee, or agent of any corporation, who knowingly participates in such violations, may be punished by a like fine, imprisonment or both.
How to file?
You can access the online survey at http://www.bea.gov/surveys/respondent_be10.htm. As the determination of the reporting requirement can be complicated, we suggest you contact your MKS&H tax advisors to confirm your reporting obligation and/or to prepare the appropriate forms.