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Deadline to file BE-10 Benchmark Survey Approaches

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Every five years, the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) conducts a benchmark survey about U.S. investments in foreign business enterprises. The survey is used to produce statistics on the scale and impact of U.S. – owned business activities abroad.

Who is Required to File

All U.S. persons with a foreign affiliate (excepting specific private funds) are required to have filed the survey at the end of the 2019 fiscal year. Completion of the survey is mandatory for all U.S. persons that are required to file – regardless of whether they receive formal notification from the BEA.

A U.S. person has a foreign affiliate if they have “direct or indirect ownership or control of at least 10% of the voting stock of an incorporated foreign business enterprise, or an equivalent interest in an unincorporated foreign business enterprise.” For example, a foreign branch or foreign partnership would constitute an unincorporated foreign business enterprise.

If you own foreign rental property, you may have a BE-10 filing obligation, although it is important to note that residential real estate held exclusively by a U.S. person for personal use (and not for profit-making purposes) is not subject to the reporting requirements. Additional information regarding ownership of foreign rental property is addressed in this FAQ.

BE-10 Forms

The table below summarizes the BE-10 forms and their uses.

Form
Use / Purpose
BE-10 – Claim for not filing
If you were notified by the BEA and have determined you are not required to file.
BE-10A
General information on the individual, trust, estate and non-profit organization required to file the survey.
BE-10B
Report for majority-owned foreign affiliates of U.S. parents with assets, sales, or net income greater than $80 million (positive or negative).
BE-10C
Report for majority-owned foreign affiliates of U.S. parents with assets, sales, or net income greater than $25 million (positive or negative) but no one of these items was greater than $80 million (positive or negative). Minority owners and foreign affiliate parents may also be required to file Form BE-10C.
BE-10D
Report for foreign affiliates for which no one of the items: assets, sales, and net income was greater than $25 million (positive or negative), and is not a foreign affiliate parent of another foreign affiliate being filed on Form BE-10B or BE-10C.

All 2019 BE-10 forms and related instructions are available from the Bureau’s website. The forms can be filed online, mailed or faxed.

Due Dates

The deadline for BE-10 submission depends on how many forms a U.S. person is required to file:

  • May 29, 2020 for U.S. reporters filing fewer than 50 forms
  • June 30, 2020 for U.S. reporters filing 50 or more forms

Note: The BEA is extending the BE-10 file deadline to August 31, 2020. Extensions can be requested via BEA’s efile portal prior to the original due dates.

Any U.S. reporter required to file but who fails to do so may incur a civil penalty of up to $25,000. Willful failure to file can result in criminal penalties.

If you have any questions regarding BE-10 filings, please contact your Berntson Porter service team. We are here to help.

Additionally, Berntson Porter is here to help you navigate these unprecedented times. Visit our online Resource Center for up-to-date information about COVID-19 legislation that impacts you and your business.