From BEA reports to foreign trust scrutiny, there are quiet changes happening right now that could impact your foreign seller closings - and they're not getting the attention they deserve.
If you work with foreign sellers, investors, partnerships, or trusts, here are three developments we think you should have on your radar:
1️⃣ BE-10 Reporting: Most People Don't Know This Exists
If your client is a U.S. business or partnership with 10% or more foreign ownership, they may be required to file a BE-10 report with the Bureau of Economic Analysis this year.
- Deadlines run through June 2025
- Penalties can hit $4,000+ per missed report
Why it matters: These clients may be involved in deals you're closing right now - and they often have no idea this form exists. We're helping clients get compliant before closing delays or IRS issues pop up.
2️⃣ Foreign Trusts & Estates: IRS Is Ramping Up Enforcement
There's increasing pressure on foreign trusts and estate structures to properly report U.S. assets. That means stricter rules around Forms 3520, 3520-A, FBAR, and more.
- Penalties are steep - $10,000+ per form
- Missed filings can open an unlimited audit window
Why it matters: We've seen foreign clients involved in real estate sales where no one flagged the trust status. That puts everyone - including title - in a tough spot later.
3️⃣ Foreign Partners in U.S. Real Estate
There's proposed legislation affecting foreign partners in U.S. real estate entities, including changes to REIT ownership thresholds and disclosures.
Why it matters: Deals involving these entities could face delays, revised documentation, or new filing requirements that land after the closing table.
If you're seeing more cross-border complexity in your deals, you're not alone - and you're not on your own.
Let's stay ahead of it together.
– The Foreign Tax CPA Team
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Kat Rodgers
Foreign Tax CPA, LLC
Cocoa Beach FL
+1 (321) 784-8329
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