BE-12 Reporting of Foreign Ownership in US Entities
Updated: May 25
Important Compliance Due 5/31/2023
The BE-12 report is a survey conducted by the United States Bureau of Economic Analysis (“BEA”). The survey is conducted every 5 years with the current survey covering fiscal years ending in 2022. Note that this is independent of any IRS filing which is done separately.
All entities subject to the reporting requirements must file, even if they are not contacted by BEA.
The BE-12 is required to be filed by all US business enterprises, including branches, in which a foreign person owns or controls, directly or indirectly, 10 percent or more of the voting securities (if an incorporated U.S. business enterprise) or an equivalent interest (if an unincorporated U.S. business enterprise such as single member LLC's). All business enterprises subject to the reporting requirement must file the BE-12, regardless of whether they have been contacted by BEA to file.
Generally, the BE-12 survey requests information about the business enterprise’s ownership, holdings, industry classification, total sales, employment, exports, imports, and transactions between the foreign parent and US entity. In addition, business enterprises must report on select financial and operating data. Business enterprises may need to calculate or recalculate the requested data based on BEA’s specifications.
Forms to File
There are vaious alternatives of forms to file based on your entity but most of our clients are required to file the Form BE-12C
Who must file
The definition of a US business enterprise for reporting purposes is broad and includes not only legal entities but also branches and other unincorporated ventures, real estate, land, and land rights. Specifically, the filing requirement applies to real estate owned for profit-making purposes (i.e., not held for personal use of a corporation owner or an owner’s primary residence). Further, there is no minimum asset or revenue threshold for filing. All US business enterprises still in existence and at least 10 percent foreign-owned at the end of the business’s fiscal year that ended in 2022 must file even if the business was, for example, inactive or had no assets.
How to file
The easiest way to file the survey report is online with eFile at www.bea.gov/efile.
The due date for paper submissions is May 31, 2023, whereas E-filing submissions will be due on June 30, 2023. Reasonable requests for extension of the filing deadline will normally be granted if requested before the due date of May 31, 2023
Although nothing specific is mentioned on BEA’s website, penalties for failure to make required filings may be significant, as they may include both civil and criminal penalties as well as imprisonment.
How We Can Help
As with most government forms there a terms and questions where you may need some help. We are here to answer any questions you may have. Feel free to schedule a meeting at your convenient
Or we can complete your form by selecting the BE-12 pricing plan
Remember the due date is 5/31/2023
Written by John M Matras CPA
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