Reminder! Due Date for the BEA Foreign Investment Survey is June 30th
Every five years, the Bureau of Economic Analysis (“BEA”), a division of the U.S. Department of Commerce, gathers information regarding investments in foreign affiliates by U.S. persons, which include business entities, estates and individuals. The survey generally requests financial, operational, and ownership information about investments outside of the U.S. This is not a tax filing, and no payments are due. However, failure to file the required forms can result in substantial penalties.
In the past, the BEA would send out notifications letting you know if you needed to file. This year, however, the rules have changed. If you are a direct investor with a 10 percent or greater ownership interest in one or more foreign affiliates (including entities treated as corporations, partnerships or disregarded entities for U.S. tax purposes, as well as real estate that is not held for personal use), you are required to complete the survey and report detailed information regarding your ownership and the affiliate’s operations, even if you haven’t been contacted by the BEA.
Your information must be submitted to the BEA on the BE-10 series of forms by Tuesday, June 30, 2015. If you are a first-time filer reporting on less than 50 foreign affiliates, the original deadline for submitting Form BE-10 has been extended to June 30, 2015 (from the original May 29, 2015, due date). This allows all BE-10 forms to be due on June 30, 2015, unless you were directly contacted by the BEA.
If you would like to request an extension to July 31, 2015, or August 31, 2015, you must contact the BEA on or before the June 30, 2015, filing date. The extension request form can be submitted by email (email@example.com) or fax (202.606.5312), or you can request via phone by calling 202.606.5566.
New this year is the BEA’s ability to assess penalties from $2,500 up to $25,000 for failure to submit the required information on a timely basis. Therefore, if you have direct foreign investment to report, please file Form(s) BE-10 as soon as possible. Willful failure to file may result in additional penalties and/or imprisonment.
For assistance from the BEA on the reporting of direct investments abroad, please contact them by phone at 202.606.5566, or by email at firstname.lastname@example.org.
If you would like to discuss the survey or the requirements in more detail, please contact your Cherry Bekaert Tax professional.