6/1/2015

ImpendingDeadlineforBureauofEconomicAnalysisSurveysMayCauseUnpreparedU.S.CompaniestoBeSubjecttoPenalties

PublishedonTheNationalLawReview(http://www.natlawreview.com)

ImpendingDeadlineforBureauofEconomic
AnalysisSurveysMayCauseUnpreparedU.S.
CompaniestoBeSubjecttoPenalties
ArticleBy:
ScottJ.Bakal
EricM.McLimore
JeffreyS.Shamberg
Everyfiveyears,theU.S.BureauofEconomicAnalysisoftheU.S.DepartmentofCommerce(BEA)
conducts a benchmark survey regarding U.S. direct investment abroad by country and industry. The
purpose of the survey is to collect financial and operational data regarding U.S. companies and their
foreign affiliates. Prior to the 2014 benchmark year, only those U.S. persons and entities that were
contactedbytheBEAwererequiredtocompletethesurvey.Withrespecttothe2014fiscalyear,forthe
firsttime,theBEArequiredfilingseveniftheagencydidnotcontactarequiredfiler.Accordingly,U.S.
ReportersmustsubmitsurveysonFormBE10orrequestsforextensionbyeitherMay29,2015orJune
30,2015.
Civilpenaltiesrangingfrom$2,500to$25,000maybeimposedonU.S.Reportersthatfailtofile,and
criminalpenaltiesmaybeimposedonU.S.Reporters,includingofficers,directors,andemployees,for
willfulviolations.
This filing is in addition to the Report of Foreign Bank and Financial Accounts (FBAR) that is
requiredtobefiledeachyearbyJune30.FilinganFBARreportwillnotexemptacompanyfrom
penaltiesforfailuretofiletimelytheFormBE10.
AllU.S.persons(includingindividuals,corporations,partnerships,trusts,andestates)thatdirectlyor
indirectlyownedorcontrolledatleast10percentofthevotingstockof,oranequivalentinterestin,a
foreignbusinessenterpriseatanytimeduringthe2014fiscalyearmustfileaFormBE10seriessurvey.
Notably, the definition of business enterprise includes any corporation, partnership, and organization
with a profitmaking purpose, as well as ownership of any foreign real estate that is not used as a
residencefortheowner.Aseparatesurveyisdueforeachforeignaffiliate.Thetypeofsurveythatmust
be filed depends on the financial metrics of the foreign affiliate and whether the U.S. Reporter is a
majorityorminorityowneroftheforeignaffiliate.However,thereisnoexceptiontothisfilingbased
onthesizeoftheforeignaffiliateortheU.S.Reporter.
U.S.ReportersfilingfewerthanfiftyFormBE10seriessurveyswereoriginallyrequiredtofilebyMay
29,2015.TheBEArecentlyextendedthedeadlinefornewfilersuntilJune30,2015.Thedeadline
forU.S.ReportersfilingmorethanfiftyFormBE10seriessurveysisJune30,2015.
All U.S. persons and companies with foreign affiliates are potentially required to file and should
determinetheirfilingobligationsimmediately.TheBEAestimatesthattheaveragefilerwillspend144
hoursontheirresponse.U.S.Reportersmayrequestfilingextensionsnolaterthantheoriginalduedate
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6/1/2015

ImpendingDeadlineforBureauofEconomicAnalysisSurveysMayCauseUnpreparedU.S.CompaniestoBeSubjecttoPenalties

oftheirsubmissionbyphone,fax,orthroughtheBEAseFilesystem.
2015Neal,Gerber&EisenbergLLP.
SourceURL:http://www.natlawreview.com/article/impendingdeadlinebureaueconomicanalysis
surveysmaycauseunprepareduscompanie

http://www.natlawreview.com/print/article/impendingdeadlinebureaueconomicanalysissurveysmaycauseunprepareduscompanie

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