If your business has an interest in an entity located outside the United States, then the Department of Commerce may have added more weight to your general compliance burden. For those companies and individuals meeting certain requirements, a Form BE-10 report must be filed with the Bureau of Economic Analysis (BEA). Moreover, the month of June is prime filing season for this report, so your immediate attention may be warranted.
According to its instructions, the BE-10 report is required of any United States person that had a foreign affiliate at any time during that person’s 2014 fiscal year. Specifically, the report is required of any U.S. person “that had direct or indirect ownership or control of at least 10 percent of the voting stock of an incorporated foreign business enterprise, or an equivalent interest in an unincorporated foreign business enterprise.”
In the past, the BEA has surveyed companies randomly every five years using the BE-10 report format. However, the BE-10 report is now required of all meeting the filing requirements.
Those U.S. persons required to file less than 50 forms were subject to a May 29, 2015 filing deadline, while those required to file 50 forms or more have a filing deadline of June 30th. Fortunately, the May 29th deadline was automatically extended to June 30th for “new filers.” In this case, a “new filer” is a U.S. person that is now required to file the BE-10 report, but has never actually filed a survey of U.S. direct investments abroad with the BEA.
The monetary penalties for not filing the BE-10 report can range from $2,500 to $25,000, and willful failure to file can result in a criminal penalty. Accordingly, you are strongly encouraged to determine your need to file a BE-10 report, and to file a report if you are subject to its filing requirements.
Please go to the following BEA website for more information: