U.S. Taxpayers with Foreign Affiliates Have An Extra Reporting Requirement in 2025 by Jairan Shirazi
U.S. persons, businesses, trusts and estates with 10 percent or more ownership interest or voting control over a foreign business enterprise in fiscal year 2024 have a quinquennial requirement to file a Bureau of Economic Analysis (BEA) Forms BE-10 by May 30 or June 30, 2025, depending on the number of forms they must file.
The filing is essentially a benchmark survey the Department of Commerce conducts every five years on the finances and operations of U.S. multinational entities. The data culled from the survey provides the government with details concerning the scale and effect of U.S. investment and business activities abroad, which policymakers and business leaders rely on to make informed decisions about hiring, investing, wages and taxes. Federal privacy laws protect all the data collected by the BEA; the government must obtain the permission of each filer before sharing any of its identifying data.
Affected taxpayers include those with direct or indirect ownership or control of at least 10 percent of the voting stock of an incorporated foreign business enterprise or an equivalent interest in an unincorporated foreign business enterprise at the end of the taxpayer’s 2024 fiscal year. This may include U.S. partnerships and other entities with foreign commercial real estate ownership, private funds with foreign investments and the U.S. subsidiary of foreign-owned entities with affiliates in different foreign countries.
The May 30, 2025, filing deadline applies to U.S. taxpayers required to file fewer than 50 Forms BE-10 forms, whereas the June 30, 2025, deadline applies to taxpayers required to file 50 forms or more. A failure to file can result in civil penalties of $4,735 per report as well as criminal penalties of $10,000 and up to a year in prison for willful noncompliance. While taxpayers may receive a notice from the BEA indicating their requirement to file a BE-10 by the requisite deadlines, many will not, putting the burden on taxpayers to recognize whether they have a filing obligation. Moreover, taxpayers who receive a notice from the BEA about a filing obligation for a foreign affiliate they no longer own will still have to file a Form BE-10 Claim for Not Filing by the requisite deadlines.
Completing a BE-10 report can be tedious and time-intensive. Therefore, applicable taxpayers should start this process as soon as possible under the guidance of their trusted advisors and CPAs.
About the Author: Jairan Shirazi is a senior manager of Tax Services with Berkowitz Pollack Brant, where she helps individuals and businesses grow while complying with international tax laws. She can be reached at the CPA firm’s Miami office at (305) 379-7000 or info@bpbcpa.com.
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