Reporting Requirement That People With Interests In Foreign Businesses Should Know About

There is a little known non-tax filing requirement known as a Form BE-10 that this column discusses.  This reporting requirement can affect people with interests in foreign businesses, and this includes U.S. beneficiaries of foreign trusts.  If a person that this applies to fails to file a required Form BE-10 they could be subject to civil penalties, and in some circumstances they might even be subject to criminal penalties.  The Form BE-10 is known as the Benchmark Survey of U.S. Direct Investment Abroad, and it is the most comprehensive survey of this subject that is administered by the Bureau of Economic Analysis (BEA).  It is important for clients and wealth management professionals to consider whether Form BE-10 filing requirements apply to them. 

See Dominic Jones, Little Known Reporting Requirement may surprise many U.S. Persons (including U.S. Beneficiaries of Foreign Trusts) with Interests in Foreign Businesses, Wealth Strategies Journal, November 3, 2015.

Special thanks to Jim Hillhouse for bringing this article to my attention.