Form BE-10, “Benchmark Survey of U.S. Direct Investment Abroad,” issued by the Commerce Department’s Bureau of Economic Analysis (BEA), is filed every 5 years for U.S. Persons with Non-U.S. Investments. The BE-10 survey is one of many mandatory surveys to collect information on US investment abroad and foreign investment in the US. The BE-10, which has a series of component parts, is the BEA’s benchmark survey of US direct investment abroad and is used to produce statistics on changing trends in investment activities of US-owned businesses in other countries. The BE-10 survey is conducted every five years and this year’s survey covers fiscal years ending in 2019. The survey is used to produce statistics on the scale and effects of US-owned business activities abroad. Business leaders use these statistics to inform decisions about hiring and investing. Policymakers and researchers use them to analyze the impacts of direct investment on jobs, wages, productivity and taxes.

The BEA publishes US economic and industry statistics, including international transactions and investments, and is authorized to mandate reporting under the International Investment and Trade in Services Survey Act (the “Act”). The Act generally requires that the BEA collect information on international investment and foreign trade in services. The confidentiality of the information collected by the BEA is protected under the Act and the BEA is prohibited from granting another agency access to the data for tax, investigative, or regulatory purposes.

A BE-10 report is required of any U.S. person that had a foreign affiliate – that is, that had a 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 the end of the U.S. person’s 2019 fiscal year. A response is required from entities subject to the reporting requirements, whether or not contacted by BEA. If you were NOT notified by BEA to file a BE-10 survey, and you do NOT meet BE-10 filing requirements, no action is necessary.

A complete BE-10 report is due on the following dates:

• May 29, 2020 for a U.S. Reporter required to file fewer than 50 Forms BE-10B, BE-10C, and/or BE-10D.
• June 30, 2020 for a U.S. Reporter required to file 50 or more Forms BE-10B, BE-10C, and/or BE-10D.

Given recognized compliance challenges due to the COVID-19 precautions in the current environment, the BEA is flexible with granting extensions up to August 31st, where US Reporters contact the BEA in advance and receive approval from the BEA. Without approval, the deadline for the 2019 BE-10 Survey forms remains (a) May 29th, 2020 for respondents with fewer than 50 BE-10 forms and (b) June 30th, 2020 for respondents with 50 or more BE-10 forms to complete.

The BE-10 series of surveys is often overlooked because it is only required every 5 years, and is NOT a tax form. Your accountant or tax lawyer may not prepare it unless you ask them to help. Like many of the foreign reporting forms, the penalties are draconian.

Determining whether a US individual or entity has a BE-10 reporting obligation can be complicated, especially for those holding interests in a multi-tiered ownership structure. Wheeler Accountants is able to assist clients in confirming whether they have a reporting obligation, help in consolidating filings and, if needed, assist with preparation of Form BE-10.

If you are unsure if you meet the filing requirements, contact us and we can be of assistance.