Purpose of Form
The Bureau of Economic Analysis (“BEA”) is collecting the Form BE-120 Benchmark Survey of Transactions in Selected Services and Intellectual Property with Foreign Persons. The survey is intended to gather data on transactions in selected services and intellectual property types between U.S. and foreign persons. Per the BEA, the collected information will be used “to formulate U.S. policy on such international transactions, and to analyze the impact of that policy and the policies of foreign countries.”
July 31, 2018 (E-Filed)
A BE-120 survey is required of each U.S. person that:
- Had transactions with foreign persons in the covered services or intellectual property during its 2017 fiscal year. Any U.S. person that did not have transactions in the covered services or intellectual property is required to complete through page 8, if notified by BEA about this survey.
- Had combined sales to foreign persons in excess of $2 million, or whose combined purchases from foreign persons of covered services and intellectual property exceeded $1 million for its 2017 fiscal year on an accrual basis.
Transactions that will need to be reported generally include:
- Transactions between your consolidated domestic U.S. operations and all foreign persons, regardless of affiliation, including intercompany transactions that you may not consider transactions under global consolidation.
- Services performed on a cross-border basis, wherein the service is performed remotely by internet, email, telephone, postal service, etc.
- Services performed in person, wherein the service is performed for, or by, an individual temporarily traveling abroad.
- Sales and purchases of rights to use or distribute intellectual property, as well as outright sales or purchases of intellectual property such as patents, copyrights, trademarks, etc.
Persons who fail to report may be subject to a civil penalty of not less than $4,454, and not more than $44,539, and to injunctive relief commanding such person to comply, or both.
For additional information, please contact your tax advisor at HLB Gross Collins, P.C.