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Deadline to Complete BEA 2014 Survey of U.S. Direct Investment Abroad Is Rapidly Approaching

Posted 1:05 PM by

Any U.S. person that had a foreign affiliate at any time during the U.S. person’s 2014 fiscal year is now required, for the first time, to file the Bureau of Economic Analysis’ (BEA) benchmark survey. The benchmark survey is due by May 29, 2015 (or June 30, 2015, if filing for more than 50 foreign affiliates).

 

Who Needs to File

“U.S. person” means any person that is a resident of the United States or subject to the jurisdiction of the United States. The term “person” is used in the broad legal sense and includes any individual, corporation, partnership, estate, trust, branch or other organization. A foreign affiliate includes any business enterprise located outside the United States that is directly or indirectly owned or controlled by a U.S. person to the extent of 10% or more of its voting stock, or an equivalent interest in an unincorporated business, including a foreign branch.

 

What to File

A Form BE-10 report is required of any U.S. person that had a foreign affiliate. The U.S. person must complete Form BE-10A. Additionally, the U.S. person must complete a Form BE-10B, BE-10C, or BE-10D as appropriate for each foreign affiliate. The basic application per foreign affiliate looks at three items (total assets, sales or gross operating revenues, or net income (loss)) and is:

  • Form BE-10B – Majority-Owned Foreign Affiliate where at least one of the three items is greater than $80 million (positive or negative).
  • Form BE-10C:
    • Majority-Owned Foreign Affiliate where at least one of the three items is greater than $25 million (+ or -) but no one item is greater than $80 million (+ or -).
    • Minority-Owned Foreign Affiliate where at least one of the three items is greater than $25 million (+ or -).
  •  Form BE-10D – Foreign Affiliates where all three items are less than $25 million (+ or -).
 

Where to File

The BEA Benchmark Survey can be completed electronically on the BEA website at bea.gov/efile. New users can create an account by clicking the link on Step 1. If you eFile the survey, do not submit paper reports.

Fillable PDF files are also available on the BEA’s website. The fillable PDF files can be completed, printed, signed and mailed to: 

U.S. Department of Commerce
Bureau of Economic Analysis BE-69(A)
Shipping and Receiving Section M-100
441 L Street NW
Washington, DC 20005

Fillable PDFs can be found at bea.gov/surveys/respondent_be10.htm.

 

Penalties

U.S. persons that fail to submit the survey report may be subject to a civil penalty of not less than $2,500 and not more than $25,000, and to injunctive relief commanding such person to comply, or both. U.S. persons that willfully fail to submit the survey report shall be fined not more than $10,000 and, if an individual, may be imprisoned for not more than one year, or both.

The BEA has informally stated that they generally do not intend to pursue penalty enforcement. However, this was informal guidance that cannot be relied upon. Furthermore, consistent and repeated failures may eventually lead to application of the civil and criminal penalties.

 

Extension

A one-month extension can be requested by completing and submitting the BEA’s one-page extension request form before the original due date of the Form BE-10. 

Please contact your KSM advisor for additional assistance.

About the Author
Ryan Miller is a partner in Katz, Sapper & Miller’s Tax Services Group. Ryan provides consulting services on a variety of technical tax matters, with an emphasis on international tax, oversees tax compliance and handles tax controversies. His experience includes entity taxation, among other areas.

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