Every five years the U.S. Bureau of Economic Analysis ("BEA"), a bureau within the Department of Commerce, requires U.S. persons with foreign affiliates to file Form BE-10. In the past, these forms were sent to those persons most likely to have such interests, typically large corporations. For 2015, there has been a change that requires any U.S. person directly or indirectly owning 10% or more of a foreign business enterprise to file a BE-10, regardless of whether they are instructed to do so by the BEA.
A "U.S. person" is defined as an individual, trust, estate, partnership, corporation or other organization that is a resident in or subject to U.S. jurisdiction. A "foreign affiliate" is defined as any direct or indirect ownership of 10% or more in a foreign business enterprise, including both incorporated and unincorporated business entities.
Forms BE-10 are due by May 29, 2015.* However, filers may request an extension of time to file until June 30.
Penalties for failure to file range from $2,500 to $25,000, plus an additional $10,000 penalty if failure to file is willful - individuals that willfully fail to file could also be subject to possible imprisonment under the law.
The BE-10 forms are very lengthy and involve providing substantial amounts of financial data, and data relating to the activities of the filer and its foreign affiliates. These are not tax returns and do not rely on tax-based data or tax computations. Accordingly, many of our clients can prepare these forms. Others may choose to engage Friedman LLP to assist in the preparation of the Form BE-10 and/or request for extension.
*PLEASE NOTE if you received correspondence from the BEA that included a Reporter ID Number, Friedman LLP has made special arrangements with the BEA to obtain an extension via email for its clients by providing the Client Name and Reporter ID Number. To be included, this information needs to be sent to your Friedman LLP professional no later than May 27.
Friedman LLP clients subject to the reporting requirements that did not receive correspondence will be automatically granted a 30-day extension under our special arrangement with the BEA. Please contact your Friedman LLP professional for more information and/or assistance with these filing requirements.
Download the forms by visiting the BEA website at the link provided: http://www.bea.gov/surveys/respondent_be10.htm