Contact: Lee Zimet of Berdon LLP (New York, New York, USA - TIAG)
The U.S. Bureau of Economic Analysis (BEA) recently imposed new filing requirements on U.S. persons with foreign affiliates. The BEA is an agency of the U.S. Department of Commerce. In an effort to secure current economic data on foreign affiliates, the BEA has mandated Form BE-10 filings by certain U.S. persons once every five years. These forms were previously only required if a U.S. person was contacted directly by the BEA.
Under the new rules, any U.S. person that owns, directly or indirectly, 10% or more of a foreign business enterprise (including a partnership or other unincorporated enterprise) is subject to the reporting requirements. A U.S. person is defined to include individuals, trusts, estates, partnerships, corporations, or other organizations (including private funds) that are resident in or subject to U.S. jurisdiction.
Generally, U.S. persons are required to file Form BE-10 by May 29, 2015. U.S. persons may apply for an extension of time to file until June 30, 2015. Failure to file a Form BE-10 can result in civil penalties of $2,500 to $25,000. In addition, willful failure to file can result in a penalty of $10,000, and, in the case of an individual, possible imprisonment for not more than one year, or both.
For more information about this new filing requirement, click here.
