Advocacy That Makes a Difference

The TXCPA Federal Tax Policy Committee is dedicated to advocating for our members and the accounting profession at the national level. Our team of experienced professionals reviews federal tax legislation, regulations, and administrative pronouncements to ensure your voice is heard in Washington. Through proactive engagement, we provide thoughtful feedback and expert input to policymakers, striving to shape fair and effective tax policy that supports the needs of our members and the broader accounting community.

What We Do

Analyze proposed federal tax laws and regulations for their impact on our members and the profession.
Submit formal letters, comments, and recommendations to key government agencies and officials.
Keep TXCPA members informed about critical policy developments and opportunities for engagement.
Represent the collective expertise and interests of Texas CPAs in the federal policy-making process.

Response Letters and Articles

We are committed to transparency and keeping you updated on our advocacy efforts. View the most recent letters submitted by the Federal Tax Policy Committee, as well as articles drafted on recent federal tax issues here.

By John Kelleher, CPA-Fort Worth

March 19, 2025

Most U.S. multinationals are quite aware of the various foreign information reports required to be included in their federal income tax return (Forms 5471, 5472, 8858, etc.). However, there is another reporting requirement from the Department of Commerce's Bureau of Economic Analysis (BEA) that is less well known. The Form BE-10 is required every five years and compliance with this reporting requirement is essential to avoid penalties and to fulfill obligations under federal law.

Purpose of the BE-10 Form

Form BE-10 is a mandatory survey conducted by the BEA to collect comprehensive data on U.S. direct investment abroad. The information gathered is used to analyze economic trends, formulate policy and produce statistical reports on the activities of U.S. multinational enterprises (MNEs). The data collected contributes to the assessment of the U.S. economy’s global position and investment flow patterns.

Who is Required to File?

Any U.S. persons, including corporations, partnerships and individuals, that had a foreign affiliate at the end of the reporting year (a foreign affiliate is any foreign business enterprise in which the U.S. person owns, directly or indirectly, at least 10%) is required to file Form BE-10. Even if a company has not received a notice from the BEA, it must still submit a BE-10 report if it meets the filing criteria.

Summary of BE-10 Forms

The BE-10 report consists of several different forms that companies must file depending on their structure and investment activities:

BE-10A: Filed by the U.S. parent company providing financial and operational details for the consolidated U.S. domestic entity.
BE-10B: Filed for majority-owned foreign affiliates (more than 50% U.S. ownership) that meet the reporting thresholds.
BE-10C: Filed for minority-owned foreign affiliates (between 10% and 50% U.S. ownership) or majority-owned affiliates that do not meet BE-10B thresholds.
BE-10D: Filed for foreign affiliates that have less than $25 million in total assets, sales or net income and do not meet the more detailed filing requirements.

Filing Deadlines

The BE-10 report is due at different times depending on the number of foreign affiliates. Extensions may be requested if made prior to the filing deadline.

May 30, 2025: For U.S. reporters with fewer than 50 foreign affiliates.
June 30, 2025: For U.S. reporters with 50 or more foreign affiliates.

Penalties for Non-Compliance

Failure to file Form BE-10 may result in significant penalties. Noncompliance can lead to civil penalties ranging from $5,911 to $59,114 (adjusted for inflation). Willful failure to report may also result in criminal penalties, including fines up to $10,000 and imprisonment for individuals responsible for the noncompliance.

Next Steps

Companies should begin gathering the necessary data as soon as possible to ensure timely and accurate filing. If assistance is needed, consult with legal, tax or financial advisors familiar with BE-10 requirements. For additional information, please visit the BEA website at www.bea.gov .

https://www.bea.gov/sites/default/files/2025-02/be10-instructions.pdf

Why This Matters

This incredibly important work helps ensure that tax regulations and accounting standards are fair, practical, and serve the public interest. Discourse with regulatory bodies during rulemaking can make a huge impact on our economic well-being.
A Public Service

Providing feedback to standard setting and regulatory bodies on proposed rules is of crucial importance. Accounting professionals provide a grassroots perspective from those who understand the wider ramifications of rules compliance.
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