Navigating the BE-12 Survey: Understanding Requirements, Deadlines, and Penalties

Operating US businesses under foreign ownership is a tricky process for new and experienced business owners alike. Foreign business owners in the United States require a thorough understanding of various unique business processes and forms to guarantee compliance with foreign laws. Items like the BE-12 Benchmark Survey are integral to maintaining a professional and compliant organization. While the survey is mandatory for many businesses, foreign owners might struggle to navigate the complex and daunting process to assess which of the 4 BE-12 survey forms to file and how to do it.

However, foreign ownership doesn’t have to be too complicated with the proper services and education. This article will explore the critical aspects of the BE-12 survey, including its purpose, who should file it, and what information you’ll need to complete the survey successfully and the penalties if not done timely. Let’s get started so you can understand  the BE-12 Benchmark Survey requirements and help your company thrive.

BE-12 Survey Content Covered:

• What is the BE-12 Survey of BEA
• Who must report / file the BE-12 Survey of BEA
• What are the BE-12 Survey Requirements
• When is the deadline for BE-12 Survey
• What are the penalties for not filing or late filing the BE-12 Survey
• Which BE-12 survey form to file
• How to file the BE-12 Survey

What Is the BE-12 Survey?

The BE-12 Benchmark Survey of Foreign Direct Investment in the United States is a survey conducted every five years encompassing numerous topics related to foreign direct investment in the US. The BE-12 Benchmark Survey gathers essential data and is mandatory for business owners subject to requirements set by the Bureau of Economic Analysis (BEA).

The BE-12 is a comprehensive survey to help the US government understand the economic impact and significance of foreign direct investment to the US economy. The survey identifies crucial changes in these investments and the ongoing influence foreign investments have over time.

Depending on where your business falls under BE-12 survey requirements, you may have to file one of the for BE-12 forms at some point during your business ownership. We have explained the form types further below in this post.

Who Must Report the BE-12 Survey?

 All US affiliates (all U.S. companies such as Corporations, LLC's etc.) must report the BE-12 survey at the end of the fiscal year in which the survey is being conducted. These affiliates include US enterprises where foreign investors or entities control 10 percent or more of a company’s voting securities or have an equal interest in the company.

A simpler explanation (but not the definite criteria) may be that if your U.S. company has shareholders, owners with 10% or more shares / interest, a BE-12 must be filed.

US affiliates must respond to a BE-12 Benchmark Survey regardless of whether the BEA contacts the individual directly. For this reason, it’s essential to know the specific requirements that determine whether you need to file a BE-12 survey.

Special rules apply for U.S. affiliates that are limited partnerships or that have an ownership interest in a U.S. limited partnership. Certain private funds may be exempt from filing; see item (f) of the BE-12 Claim for Not Filing for more information.

IMPORTANT! If you incorporated your U.S. company in the year 2022, then you may also have to file BE-13 form. Please see the BEA site linked here for BE-13 instructions.

If you need to file one of the four BE-12 surveys, you may have two options:

1) You can do it yourself. You read this post and then go to our step-by-step guide linked here for more technical details on how to file.

2) We can do it for you. Just click the image below and purchase our $499 BE-12 filing service.

We can complete and file this survey for you.

What Happens If You Don’t Meet the BE-12 Filing Requirements?

If the BEA notifies you to file a BE-12 Benchmark Survey, but your company doesn’t meet the necessary filing requirements, you don’t need to file the BE-12. However, you do need to submit the BE-12 Claim for Not Filing. This claim is necessary to guarantee compliance with your company’s reporting requirements and prevent unnecessary follow-up communication.

If you did not receive a notification from BEA to file a BE-12 survey and do not meet the BE-12 filing requirements, then you do not need to take any action.

What Is the Deadline?

The deadline for 2022 BE-12 filing is May 31, 2023, for paper filing or June 30, 2023, for companies using BEA’s eFile system. Companies can request an extension of their filing deadline, which is typically accepted if it is requested before the standard filing deadline.

What Are the Consequences and Penalties of Late Filing?

Always file your BE-12 survey on time, as some consequences and penalties occur with late filing. Failing to file your BE-12 survey by the deadline will result in a civil penalty of up to $55,808.

Late filing can also result in a criminal penalty if it is determined that the violation was willful and poorly intended. This penalty will require the individual to pay a fine not exceeding $10,000 or remain in prison for no more than one year, though it could also be both.

If you are overwhelmed by another requirement like BE-12, we can do it for $499

Along with penalties for late filing, you can face significant consequences and penalties for the following reasons:

1. Non-compliance penalty: Companies that fail to comply with the BE-12 survey reporting requirements may be subject to penalties or fines from the BEA or other regulatory agencies.
2. Inaccurate or incomplete filing penalty: Companies that submit an inaccurate or incomplete BE-12 survey may be subject to penalties or fines from the BEA. Carefully review your survey responses and ensure that all information is accurate and complete.
3. Negative impact on business: Late filing or non-compliance with the BE-12 survey reporting requirements can harm a company's reputation and relationships with regulatory agencies and business partners.

How Many BE-12 Surveys Are There?

There are numerous types of BE-12 surveys to be aware of before you start filing. Deciding which form to file requires an understanding of the following BE-12 surveys relevant to foreign ownership.

Form BE-12A

The BE-12A form is completed by majority-owned US businesses in specific cases when the following factors exceed $300 million, positive or negative:

• Total company assets
• Sales or gross operating revenues
• Net income

Form BE-12B

The second BE-12 survey form is the BE-12B. This form is necessary for majority-owned US businesses where total company assets, sales or gross operating revenues, and net income exceed $60 million but are no more than $300 million, positive or negative. Also, form BE-12B must be completed by any minority-owned US affiliate whose three items exceed $60 million.

Form BE-12C

Form BE-12C is necessary for US affiliates where none of the three items mentioned above exceed $60 million in total, positive or negative.

Form BE-12 Claim for Not Filing

The BE-12 Claim for Not Filing form is completed by individuals contacted by the BEA but who are not subject to the BE-12 reporting requirements mentioned above. The following are examples of entities that don't meet the filing requirements of the BE–12 survey based on BEA's guidance:

• The foreign voting ownership interest (or the equivalent) in the U.S affiliate is less than 10 percent.
• The U.S. affiliate is fully consolidated or merged with the report of another U.S. affiliate.
• The U.S. business enterprise was liquidated or dissolved.

How to File BE-12 Survey

The process of filling out your survey will differ depending on whether you file your BE-12 on paper forms or online. Generally, the BE-12 survey requires the following steps to complete all forms correctly:

1. Determine whether your organization must file a BE-12 survey based on the BEA’s requirements. If you aren’t sure whether you are required to follow, consider the requirements mentioned above or contact the BEA directly.
2. Register online to use the BEA’s eFile system.
3. Choose a reporting option. The BE-12 survey can be completed electronically or on paper, so go with what you’re most familiar with. Remember that there are different deadlines for completing the forms depending on your choice.
4. Decide on appropriate BE-12 survey type to file and obtain the correct forms from the BEA website.
5. Gather all necessary information to complete the survey. This information might include financial data, ownership information, employment data, and relevant details about your company’s operations.
6. Fill out and complete the BE-12 form following the provided instructions. The BE-12 survey includes several sections to gather general information and specific data about your company and foreign affiliates. Be sure to complete your survey on time to avoid costly penalties.
7. Review your completed BE-12 survey form to ensure all your information is accurate and complete. Make any necessary changes before completing and submitting this form.
8. Submit your completed BE-12 survey form to the BEA by mail or through BEA’s website.
9. Save a copy of your completed BE-12 survey for your records.
10. Follow up with the BEA after completing your survey. You may be contacted directly by the BEA for additional information or clarification.

If you need to file one of the four BE-12 surveys, you may have two options:

1) You can do it yourself. If you want to learn more about how to file the BE-12 benchmark survey, visit our blog post titled "A Step-by-Step Guide to Filling BE-12 Benchmark Survey of BEA". In this post, we offer a step-by-step guide on how to complete the survey, along with an example to illustrate the process.

2) We can do it for you. Just click the image below and purchase our $499 BE-12 filing service.

We can remove this hassle and file for you.

Foreign-Owned US Real Estate Consequences

It’s important to note that foreign-owned US real estate is subject to the reporting requirements outlined in the BE-12 survey. US businesses directly owned or controlled by foreign entities that also own or control US real estate assets must file a BE-12 survey with the BEA to report detailed information on their foreign ownership and US real estate assets.

This information typically includes the value of your real estate and the property type, location, and other relevant details regarding the ownership and use of your property. Failing to file a BE-12 survey for foreign-owned US real estate will lead to consequences and penalties from the BEA. Ensure you carefully review the survey instructions and guidelines and provide complete, accurate information to avoid fines.

Run Your US Business With Tukel, Inc.

Adapting to foreign business is a struggle for any up-and-coming business owner. Foreign ownership can be a complex process, especially if you don’t have any help to guide you along this journey. If you need assistance with the BE-12 benchmark survey, you can reach us. 

We can also support your U.S. company with its bookkeeping, accounting, taxes, payroll and more. We provides numerous flexible pricing plans to ensure you can access an effective solution to run your US business like a pro. Getting started with Tukel, Inc. is easy. Help your US business thrive by scheduling a discovery call with the sales team at Tukel, Inc. to discuss your requirements today. 

As a partner of Xero, we are proud to offer a comprehensive suite of financial management tools that empower small business owners like you to take control of your finances and grow your business with confidence. With Xero, you have access to payroll, expense claims, budgets, and financial reporting, all designed to provide real-time financial insights. By making informed decisions quickly and easily, Xero helps you take control of your business's future and achieve your growth objectives.

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