The Bureau of Economic Analysis (BEA) plays a crucial role in compiling statistics about the U.S. economy, including the measurement of the gross domestic product (GDP) and monitoring foreign trade and investment. To gather accurate data, BEA conducts several surveys and requires mandatory filings from U.S. businesses and individuals. This article provides an overview of two important surveys, Form BE-12 and Form BE-120, which have impending filing deadlines. Understanding the requirements and obligations associated with these surveys is essential for businesses and individuals to meet their responsibilities and avoid penalties.

Introduction

In today’s interconnected global economy, monitoring foreign direct investment and international transactions is vital. The BEA, a division of the U.S. Department of Commerce, has been tasked with compiling comprehensive economic data, including foreign investment-related statistics. This article sheds light on the BEA’s mandatory surveys, Form BE-12 and Form BE-120, and delves into the filing requirements, exemptions, and consequences of non-compliance.

Overview of the Bureau of Economic Analysis (BEA)

The BEA serves as the primary source of economic data for policymakers, businesses, and researchers. Its key responsibilities include collecting and analyzing data related to the U.S. GDP, foreign trade, and investment. The BEA utilizes a variety of surveys and reports to gather accurate information from U.S. businesses and individuals.

Responding to BEA surveys is mandatory, even if businesses or individuals have not been directly contacted. Two significant benchmark surveys, Form BE-12 and Form BE-120, have impending filing deadlines that must be met by applicable U.S. businesses and individuals.

Form BE-12

Deadline and Filing Methods

The Form BE-12 survey is conducted every five years, with the latest deadline approaching. For the 2022 benchmark survey, the filing deadline via mail is May 31, 2023, while the eFile System deadline is June 30, 2023. It is crucial to submit the form within these timelines to comply with the requirements.

Who needs to file?

Form BE-12 is mandatory for all U.S. business enterprises, regardless of their incorporation status, if a foreign person or entity (Foreign Parent) owns or controls more than 10% of the voting shares/securities or equivalent interest in the U.S. affiliate. Even if not directly contacted by BEA, responding to the BE-12 survey is obligatory.

Private Fund Exemption

Private funds are exempt from filing Form BE-12 if they meet specific requirements. To qualify for this exemption:

1. The U.S. business enterprise must be a private fund.
2. The private fund must not own an “operating company” in which the Foreign Parent holds at least 10% of the voting interest directly or indirectly.
3. If the Foreign Parent indirectly owns the private fund through other U.S. affiliates, those affiliates must be subject to reporting under Form BE-12.

Selecting the Correct Form BE-12

Depending on the size and type of the U.S. affiliate, different variations of Form BE-12 are used. The variations include BE-12A, BE-12B, BE-12C, and BE-12D. It is crucial to carefully select the appropriate form based on the U.S. affiliate’s characteristics and provide accurate information accordingly.

1. BE-12A. This version is for a majority-foreign-owned U.S. affiliate (50% or more collective ownership by all Foreign Parents) with total assets, sales, or net income of more than $300 million (positive or negative) at the end of the 2022 fiscal year.
2. BE-12B. This version is for either:
   • A majority-foreign-owned U.S. affiliate (50% or more collective ownership by all Foreign Parents) with total assets, sales, or net income of more than $60 million (positive or negative), but for which none of these exceed $300 million (positive or negative) at the end of the 2022 fiscal year.
   • A minority-foreign-owned U.S. affiliate (collective ownership by all Foreign Parents is less than 50%) with total assets, sales, or net income of more than $60 million (positive or negative) at the end of the 2022 fiscal year.
3. BE-12C. This version is for a majority- or minority-foreign-owned U.S. affiliate with total assets, sales, or net income of $60 million or less (positive or negative).
4. BE-12 Claim for Not Filing. This version is for any person from whom BEA has requested a BE-12 survey response but does not meet the filing requirements for Forms BE-12.

Form BE-120

Filing Deadline

Another important survey conducted by the BEA is Form BE-120. The filing deadline for the Form BE-120 survey is July 31, 2023. U.S. Persons, including individuals, companies, and other entities, must submit this form if they had sales to foreign persons or purchases from foreign persons in the services and intellectual property categories covered by the survey during the 2022 fiscal year.

Who needs to file?

The filing requirement for Form BE-120 is based on the sales and purchases made by U.S. Persons. The categories include:

1. Sales over $2 million. Any U.S. Person whose combined sales to foreign persons of covered services and intellectual property exceeded $2 million for its 2022 fiscal year on an accrual basis is required to provide data on total sales for each type of service and intellectual property transaction in which they engaged. They must disaggregate the totals by country and by relationship to the foreign transactor (foreign affiliate, foreign parent group, or unaffiliated) through filing Form BE-120.  
2. Purchases over $1 million. Any U.S. Person whose combined purchases from foreign persons of covered services and intellectual property exceeded $1 million for its 2022 fiscal year on an accrual basis is required to provide data on total purchases for each type of service and intellectual property transaction in which they engaged. They must disaggregate the totals by country and by relationship to the foreign transactor (foreign affiliate, foreign parent group, or unaffiliated) through filing Form BE-120.
3. Sales $2 million or under. Any U.S. Person whose combined sales to foreign persons of covered services and intellectual property were $2 million or less for its 2022 fiscal year, on an accrual basis, is required to provide data on total sales for each type of transaction in which they engaged through filing Form BE-120.
4. Purchases $1 million or under. Any U.S. Person whose combined purchases from foreign persons of covered services and intellectual property were $1 million or less for its 2022 fiscal year, on an accrual basis, is required to provide data on total purchases for each type of transaction in which they engaged through filing Form BE-120.
5. No sales or purchases, but received BEA notification. Any U.S. Person who is notified by BEA about the Form BE-120 survey but did not have transactions in the covered services or intellectual property is still required to complete through Page 6 of Form BE-120.

Different reporting requirements exist for each category, with varying levels of detail needed. U.S. Persons falling into Categories 1 and/or 2 must provide detailed information about each type of service and intellectual property transaction. On the other hand, U.S. Persons in Categories 3 and/or 4 are required to provide data on total sales or purchases without the need for detailed transaction-level information. U.S. Persons falling into Category 5 must still complete the form if notified by the BEA, even if they had no transactions in the covered services or intellectual property.

Services and Intellectual Property Covered

The Form BE-120 survey covers a broad range of services and intellectual property transactions. Some of the categories include advertising and related services, computer services, legal and accounting services, manufacturing services, telecommunications services, and many more. It is important to review Form BE-120 for a comprehensive list of covered services and intellectual property, as well as any specific exemptions.

Penalties for Non-Compliance

Non-compliance with the filing requirements of Form BE-12 and/or Form BE-120 can result in penalties. U.S. affiliates and U.S. Persons failing to file by the required deadline or violating the regulations may face civil penalties ranging from $5,580 to $55,808, along with potential injunctive relief. Additionally, criminal penalties may apply, including fines of up to an additional $10,000 and imprisonment of up to one year for individuals.

Key Takeaways

To summarize, complying with the filing requirements for Form BE-12 and Form BE-120 is crucial for U.S. affiliates and U.S. Persons falling under the specified categories. It is essential to submit the forms or request an extension by the applicable deadlines. These forms require detailed information and may take significant time to prepare. Failure to file or providing incorrect information can result in substantial penalties. Therefore, it is highly recommended to seek guidance from experienced legal counsel for matters related to foreign direct investment and other foreign trade compliance.

Conclusion

Adhering to the filing deadlines for mandatory BEA foreign investment-related surveys, specifically Form BE-12 and Form BE-120, is essential for U.S. businesses and individuals. These surveys help gather valuable data that contributes to a comprehensive understanding of the U.S. economy and its interactions with the global market. By meeting the filing requirements and providing accurate information, businesses and individuals can fulfill their obligations and contribute to the accuracy and reliability of economic statistics

Elite Consulting Club: Assisting US Business Owners with Correctly Filling BEA Surveys

The Bureau of Economic Analysis (BEA) surveys, such as Form BE-12 and Form BE-120, are crucial for gathering accurate data on the US economy and foreign investment-related transactions. However, filling out these surveys correctly can be complex and time-consuming for business owners. That’s where Elite Consulting Club comes in. With their expertise and guidance, US business owners can navigate the intricacies of BEA surveys and ensure accurate and compliant filings.

At Elite Consulting Club, we understand the importance of meeting BEA survey requirements and avoiding penalties for non-compliance. Our team of experts specializes in assisting businesses with understanding the survey criteria, gathering the necessary data, and accurately completing the forms. Here’s how Elite Consulting Club can help US business owners with correctly filling out BEA surveys:

1. Expert Guidance: Our consultants have in-depth knowledge of BEA survey requirements and keep up-to-date with the latest regulations. We provide comprehensive guidance to business owners, ensuring they understand the specific filing obligations based on their company’s characteristics.
2. Form Selection: Choosing the correct form is crucial to accurately reflect the nature of a business and its foreign transactions. Elite Consulting Club assists business owners in selecting the appropriate Form BE-12 variation based on factors such as ownership structure, voting shares, and foreign parent involvement.
3. Data Collection: Accurate data collection is essential for completing BEA surveys. Elite Consulting Club helps business owners gather the required information, ensuring it is organized, categorized, and ready for reporting. Our consultants work closely with businesses to ensure all relevant transactions, sales, and purchases are accounted for.
4. Form Completion: Filling out BEA surveys can be intricate, with specific fields and requirements to address. Elite Consulting Club simplifies the process by guiding business owners through each section of the forms, ensuring accurate and complete responses. We pay attention to details, reducing the risk of errors or omissions.
5. Compliance Assurance: Compliance with BEA regulations is a top priority. Elite Consulting Club ensures that all submitted forms adhere to the guidelines, minimizing the chances of penalties or regulatory issues. Our consultants conduct thorough reviews to verify the accuracy and completeness of the survey data before submission.
6. Timely Filings: Meeting filing deadlines is crucial to avoid penalties. Elite Consulting Club works closely with business owners to establish timelines, ensuring all necessary steps are completed in a timely manner. We assist with the preparation and submission of BEA surveys, alleviating the stress of meeting filing deadlines.

By partnering with Elite Consulting Club, US business owners gain peace of mind knowing that their BEA survey filings are in capable hands. Our expert consultants streamline the process, guide businesses through the requirements, and help them fulfill their reporting obligations accurately and on time.

In conclusion, BEA surveys, such as Form BE-12 and Form BE-120, are critical for monitoring foreign investment-related transactions in the US. Elite Consulting Club offers specialized assistance to US business owners, ensuring correct and compliant survey filings. With our expertise and personalized guidance, businesses can navigate the complexities of BEA surveys, minimize errors, and fulfill their reporting obligations with confidence.

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FAQs

1. How can Elite Consulting Club determine which BEA survey form my business needs to fill out? At Elite Consulting Club, we analyze your business’s characteristics, ownership structure, and foreign transactions to determine the appropriate BEA survey form. Our experts carefully review your information and guide you in selecting the correct form.
2. Will Elite Consulting Club help with data collection for BEA surveys? Absolutely! Elite Consulting Club assists in gathering the necessary data for BEA surveys. We work closely with business owners to ensure all relevant transactions, sales, and purchases are properly accounted for in the survey forms.
3. Can Elite Consulting Club ensure compliance with BEA regulations? Compliance is our priority. Elite Consulting Club conducts thorough reviews of the survey forms to ensure compliance with BEA regulations. We verify the accuracy and completeness of the data before submission, reducing the risk of penalties or regulatory issues.
4. How can Elite Consulting Club help with filing deadlines? Elite Consulting Club establishes timelines and works closely with business owners to meet filing deadlines. We assist in the preparation and submission of BEA surveys, ensuring all necessary steps are completed in a timely manner.
5. What benefits can I expect from working with Elite Consulting Club for BEA survey filings? By partnering with Elite Consulting Club, you can expect expert guidance, accurate form completion, compliance assurance, timely filings, and peace of mind. Our experienced consultants simplify the process, reducing your workload and ensuring accurate and compliant BEA survey filings.