FEOC compliance, backed by evidence
Reunion’s platform assesses compliance at both a taxpayer level and a project level for prohibited foreign entity issues — in depth, and across the full tax year — and delivers FEOC compliance determinations validated by our in-house experts.
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Diligence beyond representations
Entity testing
Every entity in the structure is tested against the Specified Foreign Entity (SFE), Foreign-Controlled Entity (FCE), and Foreign-Influenced Entity (FIE) definitions, with ownership, governance, and debt mapped in full.
• Ownership reconstructed through §318(a)(2) attribution
• Taxpayer, owners, and debtors tested against the SFE, FCE, and FIE definitions
• Every entity screened against a live SFE database of combined government watchlists (OFAC SDN, FTO, §1260H, UFLPA, and more)
Effective control testing
Every contractual counterparty is screened against the SFE database, and each agreement is reviewed in full for the terms that can confer effective control.
• Counterparties screened against the SFE database before contract review begins
• Full agreement text scanned for foreign control over output, operations, IP, or data
• Agreements with SFE counterparties read in full by our compliance experts
Supply chain testing
Suppliers, inputs, and sourcing relationships are mapped across the bill of materials to surface links to prohibited foreign entities, with the supporting records organized to substantiate the mapping.
• Bill of materials mapped to key suppliers, inputs, and sourcing relationships
• Potential links to prohibited foreign entities flagged at the supplier and input level
• Material assistance cost ratios computed by facility, qualified interconnection property, and component, and tracked against the applicable threshold
• Safe-harbor elections applied where available, including the identification safe harbor and the applicable safe-harbor cost percentages
• Supplier records and certifications organized to substantiate the mapping
How we do it
Extract and identify every relevant party and fact
We pull every relevant party from your records such as owners, debtors, suppliers, counterparties, and other third parties, along with information that will help us assess for compliance — such as dates, jurisdiction, amounts, authority, etc.
Aggregate and recompute all quantifiable amounts for each relevant controlling interest and party
We recompute ownership by vote and value, attributed up the chain under section 318(a)(2), aggregate outstanding debt by holder, and, for each project, compute the material assistance cost ratio with the applicable safe-harbor elections.
Evaluate all soft measures of authority for each relevant counterparty
Our compliance experts evaluate governance authority, such as the power to appoint officers and directors or control the board, and scan every contract for production-control terms defined in the statute, performing full manual reviews for contracts with SFE counterparties.
Screen every relevant party for SFEs
Parties are screened against government watchlists, including OFAC, the State Department’s foreign terrorist organization list, the DoD section 1260H list, the UFLPA lists and more.
Establish determinations for you and your project
Determinations are issued for SFE, FCE, FIE, FIE by means of effective control, and material assistance. Each is reviewed by our compliance team, cited to its Code section, and returned as compliant, not compliant, or unable to determine.
Maintain data and determinations real-time throughout the tax year
As ownership, contracts, and procurement change through the year, we keep the underlying facts and every determination current: debt and board composition tracked alongside equity, cost ratios re-checked as procurement shifts, and parties re-screened as the watchlists update.
Publish final determinations and a compliance report at end-of-year
A full report stating a determination for each statutory test, on every project in scope, with each source documented and the governing Code section cited.
- Determinations cited to their Code section
- Executive summary with formal determinations up front
- Full data sets in the appendix to support every determination
- Every determination reviewed for correctness by our compliance experts
- Stated assumptions and reliance terms
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