Form BE-10 & Americans With Foreign Assets

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American taxpayers are burdened with a complicated tax system and onerous FBAR (Foreign Bank Account Reporting) and FATCA (Foreign Account Tax Compliance Act) reporting requirements. Many Americans with foreign assets are surprised to learn that every five years they must also file Form BE-10 with the Bureau of Economic Analysis (BEA). 

Deadline

The deadline for all variations of the BE-10 is May 29, 2020.

Purpose

The purpose of this form is to help the BEA gather economic data regarding the foreign investments made by American individuals and companies.

Who Must File?

Individuals, trusts, estates, and entities including nonprofit organizations who own at least 10% of a foreign company or who own any foreign rental properties.

Many Versions of Form BE-10

Most individuals and smaller companies will only need to file BE-10A and BE-10D.

If assets, sales, or gross revenues are over $25 million, then forms BE-10B or BE-10C might also be required.

Information Sought

In addition to administrative information such as the name of the entity, its home country, and city, the BEA wants to know:

·      Total assets and liabilities

·      Total sales or gross revenue

·      Net income or loss (after foreign income tax is paid)

·      Ownership percentage (direct and indirect).

Changes for 2020

A new wrinkle has been added to the BE-10 for 2020. Forms must now contain a Legal Entity Identifier (LEI) number.

Undoubtedly, the LEI was added to enhance both information tracking and enforcement.

Non-Compliance

Each failure to file can result in a fine up to $25,000.

If you are required to submit multiple variations of the BE-10, it is rather easy for the government to assess multiple $25,000 fines.

Obviously, it’s important to get this right because mistakes can become extremely expensive.

Want Help?

Our consultants are experienced with Form BE-10 and can help you satisfy your obligations.

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