Do You Own 10% or More in a Foreign Business? If so, Form BEA-10 is Due Soon!
February 28, 2020
What is Form BEA-10?
Form BEA-10 is required by the U.S. Department of Commerce. The purpose of the form is to collect data about U.S.-owned business activities in other countries. The data is needed for statistics measuring the scale of direct investment abroad and the effects these activities have on the U.S. economy.
Who must file Form BEA-10?
Generally, the BE-10 must be filed by each U.S. person who has a foreign business enterprise on Dec. 31, 2019. If the U.S. person is subject to the filing requirements, that person must file Form BE-10A along with Form BE-10B, BE-10C or BE-10D, depending on the percentage of ownership and size of the foreign business enterprise.
The BE-10 survey, conducted every five years, is the BEA’s most comprehensive survey of U.S. direct investment abroad. Any U.S. person subject to the reporting requirements of the BE-10 must submit the report regardless of whether the BEA contacted it to participate in the survey. The forms are due by May 31, 2020 or June 30, 2020, if the filer has to submit more than 50 forms to satisfy its reporting obligation.
Are there penalties for failure to file?
Yes. A person who fails to file a required Form BE-10 may be subject to civil penalties and, if found to have willfully failed to file a required Form BE-10, may be subject to criminal penalties. An officer, director, employee, or agent of an entity who knowingly participates in a willful failure to file may also be subject to criminal penalties.
About the Author
Robert is an international tax partner with more than 27 years of experience providing international tax solutions to publicly and privately-held corporations on an array of international tax matters, such as foreign tax credit management and utilization, structuring foreign and domestic operations, international mergers and acquisitions, and export tax incentives. He also has many years of experience serving foreign-owned U.S. businesses.