Bureau of Economic Analysis BE-10 Report – Due Date by End of This Week

It’s that time again… conducted every five years, the Commerce Department Bureau of Economic Analysis benchmark survey of U.S. Direct Investment Abroad, referred to as a BE-10 report, is due on May 29th for U.S. persons required to file fewer than 50 reports. Others have until June 30th.

Because of the COVID-19 outbreak, BEA is operating at reduced capacity. Extensions can be easily obtained through the BEA secure e-file system at www.bea.gov/efile.

BACKGROUND

The Benchmark Survey of U.S. Direct Investment Abroad is conducted as part of routine efforts of the U.S. government to secure current economic data on the operations of U.S. persons and their foreign affiliates.

KEY Q&A’S

1. Who must file a BE-10 report?
   The BE-10 report is applicable to any U.S. person (see item (4)) owning or controlling 10% or more of the voting stock of a foreign business enterprise conducted in corporate form or an equivalent interest in a foreign business enterprise conducted in unincorporated form as of the last day of the 2019 fiscal year. This includes a foreign branch of a U.S. business.
   
   
2. What is a business enterprise?
   A business enterprise includes any commercial activity carried on outside the U.S. as well as both active and passive investments in foreign real estate.
   
   
3. What is excluded from a business enterprise?
   The following investments are excluded from being characterized as a business enterprise:

   • Private funds that report to the S.E.C. on Form PF that do not own a 10% or greater interest in any operating company abroad
   • Residential real estate held solely for personal use by a U.S. individual.
   
   
4. Who are considered to be U.S. persons subject to the reporting requirement?
   U.S. persons are:

   • U.S. citizens living in the U.S.
   • Individuals other than U.S. citizens who spent more than half of 2019 in the U.S.
   • U.S. estates, trusts, and non-profits
   • U.S. corporations, partnerships, and L.L.C.’s

   A U.S. citizen living overseas with no definite plan of returning to the U.S. within a specified timeframe is not subject to the reporting obligation.
   
   
5. By when must the report be filed?
   The 2019 BE-10 report is due on or before May 29, 2020 for filers owning less than 50 foreign business enterprises, and June 30, 2020 for those owning 50 or more.
   
   
6. Are extensions available?
   Yes. A three-month extension is available upon request.
   
   
7. What is the information used for?
   Survey data may only be used by the U.S. Federal government for statistical and analytical purposes that are published on an aggregated, anonymous basis.
   
   
8. Is the information kept confidential?
   Yes. This report is authorized under the International Investment and Trade in Services Survey Act of 1977 (Pub. L. No. 94-472). Confidentiality is protected by law. The B.E.A. is prohibited from granting another agency access to the data for tax, investigative, or regulatory purposes.
   
   
9. Is there a penalty for failure to file?
   Technically, yes, but rarely imposed.
   
   
10. Can Ruchelman P.L.L.C. assist a reporting person in completing the forms?
    Yes. Our team of Galia Antebi (antebi@ruchelaw.com) and Andreas Apostolides (apostolides@ruchelaw.com) can assist in marshalling data and having the reporting form populated with required information. Contact them by e-mail or by telephoning the firm at +1 212 755 3333.