As if there weren't enough tax filing requirements for U.S. persons with foreign investments, add a non-tax filing for the U.S. Department of Commerce's Bureau of Economic Analysis (BEA).

Every five years, the BEA conducts a survey concerning the extent of foreign investments by U.S. persons. In the past, participating in the survey and filing a Form BE-10 report were only required if requested by the BEA. However, the BEA recently expanded its filing requirements to include U.S. persons with foreign affiliates, regardless of whether they were contacted by the BEA. The reports will be kept confidential by the BEA and used for statistical analysis.

Form BE-10 is required to be filed by any U.S. person who had a foreign affiliate in which they had direct or indirect ownership or control of at least 10 percent of the voting stock of an incorporated foreign business enterprise, or an equivalent interest in an unincorporated foreign business enterprise, at any time during the U.S. person's 2014 fiscal year. A U.S. person is defined as any person resident in the United States or subject to the jurisdiction of the United States, including any individual, branch, partnership, associated group, association, estate, trust, corporation, or other organization.

U.S. reporters with less than 50 foreign affiliates must file Form BE-10 by May 29, 2015. U.S. reporters with more than 50 foreign affiliates must file Form BE-10 by June 30, 2015. Form BE-10 can be filed via mail, fax, or eFile.

The BEA can grant 30 day extensions upon request. Requests for extensions can be made by phone at (202) 606-5566, or by submitting a written form through the eFile system or faxing it to (202) 606-5312.

Additional information, including Form BE-10 and the extension form, can be found on the BEA website.

Penalties for not filing range from $2,500 to $25,000. Individuals who willfully fail to file may be subject to a civil penalty of $10,000 and may be imprisoned for no more than one year

If you have any questions about this requirement or need assistance completing Form BE-10, contact a member of Kreischer Miller's Tax Strategies group. 

Information contained in this alert should not be construed as the rendering of specific accounting, tax, or other advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.