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What You Need to Know About Form BE-10 – US Direct Investment Abroad & COVID-19

What You Need to Know About Form BE-10 – US Direct Investment Abroad & COVID-19

Every five years the US Department of Commerce Bureau of Economic Analysis (“BEA”) conducts a benchmark survey to gauge US investment abroad through a specific form (the “BE-10 Report”).

The BE-10 Report examines the 2019 fiscal year, and the deadline to comply with the filing requirements is 29 May 2020 for US persons required to file fewer than 50 forms, or 30 June 2020 for US persons required to file more than 50 forms. 

An extension of time to file for new filers is available (1) until June 30, 2020, for filers with less than 50 forms, (2) until July 31, 2020, for filers with between 50 and 100 forms, and (3) until August 31, 2020, for filers with more than 100 forms. To receive the extension, filers must request the extension by fax or email using BEA’s extension request form.

Reporting is mandatory and does not require a direct request to the filer from BEA. Failure to file BE-10 report may lead to significant civil penalties including monetary fines of between $2,500 and $25,000 (subject to inflationary adjustments). In some circumstances, criminal penalties and even imprisonment may be warranted.

BEA uses surveys to collect data about U.S.-owned business activities in other countries. The data are needed for statistics measuring the scale of direct investment abroad and the effects these activities have on the U.S. economy.

Data from these surveys contribute to many of BEA's international and national economic statistics and help answer questions such as:

  • Which countries get the most direct investment from U.S. parent companies?
  • Which industries are U.S. companies investing in abroad?

These statistics aid decision-making by Congress and federal officials; help analysts and researchers study the impact of direct investment on employment, wages, productivity, and tax revenues; and help American businesses make informed decisions about hiring, growth, and investment. All surveys of U.S. direct investment abroad are mandatory and confidential.

A foreign affiliate is a business enterprise located outside the United States in which a U.S. person or business holds a 10 percent or more voting interest.

Filing during the COVID-19 outbreak

BEA's surveys are used to produce accurate and objective statistics on the U.S. economy. Survey responses covering 2020 are particularly needed to ensure accurate measurement of the U.S. economy during the COVID-19 outbreak.

Because the present situation has temporarily reduced our capacity to send and receive paper mail, we may contact survey respondents via email. We understand that the virus already may have had profound effects on the ability of survey respondents to comply with the surveys. To assist you, we suggest:

  • Use our secure eFile system at www.bea.gov/efile or fax to submit completed forms. At present we have limited ability to receive physical copies of completed survey forms, extension requests, or other documents that are mailed or couriered to us.
  • Extensions are available if needed.
  • Provide estimates if necessary. We realize that the data requested in our surveys might be unavailable at this time or access to required records may be limited.

BEA survey staff continue to be available to assist survey respondents.

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Read more at: Tax Times blog

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