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U.S. Citizens Who Own 10% Of A Foreign Business MUST File The BE-10 Form Before The End of June
[img]https://www.welovecostarica.com/public/images/BE-10-Form.jpg[/img] “For the first time ever the government is imposing both civil and CRIMINAL penalties for non-compliance.
The fine for not filling out the survey (known as BE-10) ranges from $2,500 all the way to $25,000.
And if they think you intentionally didn’t file, you “may be imprisoned for not more than one year.”
You need to file the BE-10 form if you are a US individual or company that owned at least 10% of a foreign business at any time during your 2014 fiscal year (January 1 – December 31 for most folks.)
If you’re an individual, the reporting requirements are very simple– just a few boxes to check. It might take you five minutes… which makes being threatened with criminal penalties even more ridiculous.
Read more about the [url=http://www.bea.gov/surveys/respondent_be10.htm]Bureau of Economic Analysis (BEA) form BE-10 here.[/url]
See the BEA video at:
Can someone tell me what the definition is of a “foreign business” under this law? (I know I don’t have one now but for future reference…)
I think it might be easier to understand if you replaced the word “business” with corporation. As many folks hold assets in corporations (non functioning businesses, just a legal holding vehicle with no economic activity) in CR (ie a home or car) that is the issue. The US has reporting requirements for citizens that have an ownership interest in foreign corporations. Even with no “business” or economic activity that might generate income and subsequent taxes Uncle Sam wants this information from his minions.
I have to wonder how – if there is no business activity in the corporation and the corporation is not connected to the USA in any way – how the USA would ever know unless you tell them?
I would suggest that no matter what ‘confidentiality’ you may be promised, your personal information will be shared with your government therefore I would strongly encourage you to operate under the assumption that your government knows everything.
Scott
So confusing.
We already have to file a form about our bank account. If the corporation is just a convenience for the house or car do we file?I don’t ‘scare-monger’ sweikert925, I do try to share important information with our VIP Members, some of whom actually live in Costa Rica.
We all know that the government is faultless and would never give you conflicting information so you can choose to do with this what you wish when you eventually decide to leave the tropical climes of Chicago!
Have a nice day!
Scott
[quote=”sweikert925″]Scare-mongering again, eh Scott?
“An important fact to note is that foreign residential real estate held by a U.S. person for strictly personal use is not subject to the reporting requirements, nor is a second home abroad which is rented out while the U.S. resident is not there, but has the intent to reoccupy.”
[url=http://www.pridacpas.com/be-10-series-forms/]The BE-10 – Overview[/url][/quote]
To all the legal beagles out there…. first the $300 million provision only makes it mandatory that you complete all the sections on the form. Assets below that apparently do not absolve you on completing the earlier sections of the form.
And as for the home ownership issue. It does not address the issue of the home being held personally or by a corporation. As Scott pointed out, more conflicting and rather incomplete guidance on the issue. I’m sure there are law firms and tax compliance outfits that will give you different opinions on that issue.
Having said that the issue comes down your own opinion on what to do and whether to file. I for one have little faith or concern that Uncle Sam will be knocking on my door. He’s too busy issuing billions of dollars of tax refunds to identity theft scammers filing completely bogus tax returns. He tries his best to convince you he sees all and knows all…. I’m not buying that anymore.
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