BE-10 - US Law for Foreigners

[Aquaponicsman]

The fine for not filling out the survey (known as BE-10) ranges from $2,500 all the way to $25,000. The deadline to submit for first-time filers is June 30, 2015.

Yes, I know this is insane... but they got away with FATCA and are ramping everything up... and you face jail, even if you are unaware of these laws/regulations.

BE-10

June 1, 2015

Chances are that you’ve never heard of the International Investment and Trade in Services Survey Act that was originally passed nearly 40 years ago.

And chances are you didn’t catch the November 20, 2014 edition of the ‘Federal Register’, the US government’s daily opus of new rules and regulations that ran 331 pages that day.

So, chances are, you have no idea that the Department of Commerce might just want to throw you in jail right now. I’ll explain.

Back in 1976, Congress decided that they needed more information on US companies’ international trade activities.

So they passed a law requiring the Department of Commerce to survey the biggest businesses in America to find out more about what they were doing abroad.

These days, the survey is conducted every five years. And like most surveys it’s a bunch of useless bureaucratic drivel that only wastes the time of the poor souls who have to fill it out.

Now it’s something that can get you thrown in jail.

Late last year the Commerce Department quietly published a new ‘rule’ in the Federal Register requiring every American with certain investments abroad to fill out their survey, regardless of whether or not they were notified.

In other words, you’re just supposed to know that you have to fill out this form.

And if you don’t, the penalties are severe.

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.”

Either way, even if you had no earthly idea and had never heard of this survey, they reserve the right to seek “injunctive relief commanding such person to comply.”

So if you don’t fill out the form, they’ll get a judge to order you to comply.

This really borders on insanity.

The federal government of the United States of America… the Land of the Free... is willing to clog up the court system to either force people to fill out a survey, or to prosecute them for not doing so.

Forget about rapists, murderers, and thieves. The government’s priority is to imprison people who don’t fill out surveys.

What’s really amazing is that your elected representatives in Congress weren’t the ones to enact these absurd criminal penalties.

The Department of Commerce’s Bureau of Economic Analysis (BEA) did this all on its own. They simply created a new ‘rule’, then buried it under hundreds of pages of other regulations.

And even though Congress never even sees them, and no reasonable person has ever heard of them, these rules have the same weight and effect as the law.

So much for representative democracy.

Two important questions come to mind:

1) How many other rules that carry criminal penalties might we be breaking at this very moment without even realizing it?

2) Just who the hell do these people think they are?

Regardless of whether or not the penalties are ever exacted is irrelevant.

It’s disgusting to even be threatened with such atrocity, simply because some bureaucratic functionary needs to justify his/her position.

It’s a clear sign that in today’s system, the government doesn’t exist to serve the people. They think the people exist to support the government.

Abraham Lincoln once told a war-torn nation that a government of the people, by the people, for the people, shall not perish from this earth.

Tragically, Lincoln was totally wrong. Because this is what freedom has become in America.

Have you reached your breaking point yet?

PS:

The quick and dirty is this: you need to file 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.

The deadline to submit for first-time filers is June 30, 2015, and you can submit via mail, fax, or online. Read more about it here:

http://www.bea.gov/surveys/respondent_be10.htm

[Aquaponicsman]

Check out the rocket scientist running the prisons where they will send you!

https://www.youtube.com/watch?v=4XShqCISYk4&feature=youtu.be

[Mainecoons]

Is this threat the result of new legislation or just the bureaucrats making up their own laws again?

[ldrews]

This appears to apply only to residents of the US or US territories.

[MtnMama]

Plus it only applies to people who own 10% or more of a foreign business, like those who moved their corporate headquarters off-shore to evaide US taxes. Maybe not so bad after all.

[Sumofabit]

I hate whiners.

[Ryan Masters]

It's mainly to help identify tax evaders, and there are quite a few Americans (and Canadians) in the area who should be looking over their shoulders, not only because they're guilty, but because they're cheating Mexico as well, and Mexican law enforcement agencies are right now cooperating with NOB authorities to identify the crooks and bring them to justice. I don't hesitate to pay MY taxes, and will have no sympathy when the frauds are identified and removed.

[slainte39]

It's mainly to help identify tax evaders, and there are quite a few Americans (and Canadians) in the area who should be looking over their shoulders, not only because they're guilty, but because they're cheating Mexico as well, and Mexican law enforcement agencies are right now cooperating with NOB authorities to identify the crooks and bring them to justice. I don't hesitate to pay MY taxes, and will have no sympathy when the frauds are identified and removed.

Exactly, and the biggest complainers (whiners) are usually the biggest frauds (cheaters), except those driven by pure greed, If I were an investigator, they would be the first I would be looking into.

Even the Romans collected taxes, so what's the big deal. Nothing to hide....nothing to fear.

[geeser]

Is this threat the result of new legislation or just the bureaucrats making up their own laws again?

Tis is not a law, not passed by congress. It is a fairly new regulation by the Department of Commerce. What invasive BS.

[slainte39]

Transparency is such an evil thing,,,,,causes people to do all sorts of weird stuff and anti-social behavior.

[Mainecoons]

Well I have a suggestion to those of you who love paying taxes. Why not just pile your money in the middle of your living room and burn it, thereby cutting out the middle man?

Thanks Geeser. In other words, unelected, unfireable bureaucrats decided to write their own laws.

[Joco]

https://www.law.cornell.edu/cfr/text/15/806.16

"(1) A BE-10 report is required of any U.S. person that had a foreign affiliate—that is, that had direct or indirect ownership or control of at least 10 percent of the voting stock of an incorporated foreign business enterprise, or an equivalent interest in an unincorporated foreign business enterprise, including a branch—at any time during the U.S. person's 2009 fiscal year.

(3) Reports are required even if the foreign business enterprise was established, acquired, seized, liquidated, sold, expropriated, or inactivated during the U.S. person's 2009 fiscal year.

(4) The amount and type of data required to be reported vary according to the size of the U.S. Reporters or foreign affiliates, and, for foreign affiliates, whether they are majority-owned or minority-owned by U.S. direct investors. For purposes of the BE-10 survey, a “majority-owned” foreign affiliate is one in which the combined direct and indirect ownership interest of all U.S. parents of the foreign affiliate exceeds 50 percent; all other affiliates are referred to as “minority-owned” affiliates."

It has been around for awhile and it doesn't look like it applies to us.

[snowyco]

Spencer,
Could you tell us your opinion on whether property and houses owned using a Mexican corporation fits the BE-10 filing requirements of 10% or more ownership in a foreign business enterprise?

One other twist, Aquaponics man has cut and pasted one of Simon Black's copyrighted promotional tracts/editorials on the Commerce Department's BE-10 regulations/requirements.

In the interests of full disclosure, Simon runs a real estate development operation down in Santiago, Chile, whose main feature is offering ways for Europeans, Canadians, and Americans to escape the taxes and risks of his frequent predictions of world-wide financial economic collapse. Simon Black wants to sell us real estate lots and cabins in Chile, (with bunkers?) as a backup plan for civilization's imminent collapse.

The source of the BE-10 editorial & information above:

"The safest place in the world " ...

http://www.sovereignman.com/expat/the-safest-place-in-the-world-10413/

[Ryan Masters]

SovCits ... shoulda known. A friend of mine NOB had his life ruined and ended up in prison after he fell under the influence of these paranoid nuts. He was a very successful medical professional and tried to cheat on his taxes with one of their schemes. Got his family involved as well and they suffered much the same fate.

http://www.fbi.gov/seattle/press-releases/2013/sovereign-citizen-sentenced-to-more-than-eight-years-in-prison-for-tax-fraud-scheme

[Shelley Ronnfeldt]

With all due respect, Maincoons, I don't "love" paying taxes, but am willing to pay what I owe. These days, that isn't much. In terms of just burning the money, I'm not sure how then things like roads, social services, military, schools etc, etc that I am pleased to know are there would be paid for. I really thought that blatant politics were not allowed on this board. This particular thread, as far as I can see is thinly veiled blatant politics.

[Mainecoons]

If you think you're getting value for your money from government anywhere, more power to you.

I think you'd get more heat from burning it at home.

[El Menudo]

Okay, I'm putting on my tin foil hat right now! Geeezzzzzer Weeeeezerrr!

[slainte39]

Worse than that....for US expats, it's anti-American.

As MtnMama says, the "regulation" is probably not so bad, after all.

People who work for the government, beauracrats, as some like to call them, are human beings being hired because politicians created their departments and authorize funding of the same,......and then suddenly, they become, disreputable. As they say.....go figure!

Not paying taxes, appeals to people who are control freaks, i.e., spending the money as only they see fit or having direct control over disbursement.

[cbviajero]

The source of the BE-10 editorial & information above:

"The safest place in the world " ...

http://www.sovereignman.com/expat/the-safest-place-in-the-world-10413/

It wasn't "the safest place in the world" for the thousands of political dissidents who were tortured,murdered and dissapeared under Pinochet's military dictatorship which was backed by the US government...

[snowyco]

Continuing Simon Black's Real Estate Corp's saga in trying to convince Americans into buying a lot in his haven in rural Chile via the intimidating US Govt. BE-10 filing requirements:

I drilled into the US Govt's BE-10 website, and found that the official FAQ section has one interesting official answer to a key question relating to filing requirements for American citizens who own personal property in a foreign country using a corporation:

"Who must report on the 2014 BE-10 survey?

A BE-10 report is required of any U.S. person* that had direct or indirect ownership or control of at least 10 percent of the voting stock of an incorporated foreign business enterprise – or an equivalent interest in an unincorporated foreign business enterprise – at any time during the U.S. person’s 2014 fiscal year.

A U.S. person that has been contacted by BEA for filing the BE-10 must file a BE-10 Claim for Not Filing form if it does not meet the above filing requirements. However, a U.S. person that does not meet the reporting requirements and that has not been contacted by BEA is not required to report any BE-10 form to BEA."

- See more at: http://www.bea.gov/faq/index.cfm?faq_id=1067&searchQuery=&start=0&cat_id=0#sthash.MaLanXbc.dpuf "

http://www.bea.gov/faq/index.cfm?faq_id=1067&searchQuery=&start=0&cat_id=0

That leads us to: Who does not meet the "reporting requirements" ?

If we ignore Simon Black's rants that are reported in Aquaponicsman's post, and INSTEAD READ THE US REGULATIONS, we find that corporations set up for holding foreign real estate for personal use ARE FULLY EXEMPT - and ARE NOT REQUIRED TO FILE ANY BE-10 FORM to BEA:

"BE-10 INSTRUCTIONS (REV. 12/2014) Page 7
H. Real estate –The ownership of foreign real estate is defined to be a business enterprise and, if foreign real estate is owned by a U.S. person, it is a foreign affiliate of a U.S. Reporter. Real estate that is normally included in the property, plant, and equipment account of a foreign affiliate is not to be reported as a separate affiliate.

Residential real estate held exclusively by a U.S. person for personal use and not for profit-making purposes is not subject to the reporting requirements. A primary residence abroad that is leased to others while the owner is a U.S. resident, but which the owner intends to reoccupy, is considered real estate held for personal use. Ownership of foreign residential real estate by a business enterprise, the sole purpose of which is to hold the real estate for the personal use of the owner(s) of the business enterprise, is considered to be real estate held for personal use and therefore not subject to the reporting requirements. "

.........
For Americans who do own 10% of a foreign business:
One legal accounting website describes: "As this is a “benchmark year,” this reporting is required of all relevant persons, regardless of whether the Reporter has been contacted by the BEA to do so; publication in the Federal Register is considered notice to all persons required to report."
http://cdn.akingump.com/images/content/3/6/v2/36187/Bureau-of-Economic-Analysis-Mandatory-2014-BE-10-Survey-Reportin.pdf

"Business Enterprise” means any organization, association, branch or venture which exists for profit - making purposes or to otherwise secure economic advantage, and any ownership of any real estate."

Next: The formal filing deadline for Americans (with fewer than less than 50 interests in foreign businesses) is May 31, 2015, but the Feds have offered a 30 day extension, if you use this form:
http://www.bea.gov/surveys/pdf/be10/BE10_Extension%20Request%20Form.pdf

The basic BE-10A form is at http://www.bea.gov/surveys/pdf/be10/be10a_web.pdf

The instructions say that individuals fill out only items 1, 2, & 5 of BE-10A
"U.S. Reporter that is an individual, estate, trust, or nonprofit organization –

A U.S. Reporter that is an individual, estate, trust, or religious, charitable, or other nonprofit organization, and that owns a foreign affiliate directly, rather than through a U.S. business enterprise, should complete only items 1, 2 and 5 of Form BE-10A and attach an explanatory note attesting to its status.

Required Forms BE-10B, BE-10C, and BE-10D must be filed as appropriate."

https://www.bea.gov/surveys/pdf/be10/BE-10%20Instructions.pdf


" It (Section 801.8 of 15 CFR, Chapter VIII) also requires that persons, or their agents, who are contacted by BEA about reporting in this survey, either by sending them report forms or by written inquiry, must respond in writing. They may respond by:
• filing the properly completed BE-10 report by May 29, or June 30, 2015, as required;

• completing and returning the “BE-10 Claim for Not Filing” by May29, 2015; or

• certifying in writing, by May 29, 2015, to the fact that the person had no direct investment within the purview of the reporting requirements of the BE-10 survey."

So, if an American is required to file, then we have to file the first time in writing, and after that the Commerce Dept issues us a number/ID for future years filing on-line.

[LakeViews]

TLDR