If a "U.S. person" owns an interest in a foreign affiliate, they may be required to file Form BE-10 for the 2019 fiscal year. The BE-10 is a survey conducted every five years by the U.S. Bureau of Economic Analysis (BEA). This survey is used to gather information and determine the effect that U.S. investments abroad have on both U.S. and foreign economies.
The BE-10 reporting requirement would apply to any U.S. individual, partnership, estate, trust, corporation or other organization that was contacted by the BEA to complete the survey (regardless if they are determined to have a filing requirement or not) or had direct or indirect ownership of at least 10% of the voting interest in an incorporated or unincorporated foreign business enterprise in 2019.
The definition of a foreign business enterprise includes ownership of any foreign real estate. If the foreign real estate is held for personal use and not for profit making purposes (rental), it is not subject to the BE-10 reporting requirements.
If you are subject to the filing requirements, you must file form BE-10A along with Forms BE-10B, BE-10C or BE-10D depending on the percentage of ownership and size of the foreign affiliate.
The survey can be electronically filed here, mailed to the BEA, or faxed to the BEA at 301-278-9502.
If you were contacted by the BEA to complete the survey but determined that you do not need to file, a Form BE-10 Claim for Not Filing will need to be submitted to the BEA.
The due date to submit a Form BE-10 is May 31, 2020. There will be an extension available, although it has not yet been released by the BEA. Anyone who meets the requirements of the survey and fails to file will be subject to penalties.
DGC’s Private Client Group has significant experience advising clients on all matters relating to filing requirements for those with foreign affiliate interests. Please contact a member of your DGC client service team or Angela Fletcher, CPA at 781-937-5363 / firstname.lastname@example.org if you have any questions regarding Form BE-10.
If you would like to get updates and alerts like this sent directly to your inbox, sign up here.