Forgot to include Form 5471 in my tax return - how do I file it now?

This is actually quite common with international filing requirements. Don't panic, but you do need to address it promptly. Form 5471 is important because it reports your interest in foreign corporations, and the IRS takes these international reporting requirements seriously. You have a couple of options. The best approach is to file an amended return (Form 1040-X) and include the completed Form 5471. This shows good faith in correcting the oversight. Since you only realized the mistake recently and are taking steps to fix it, the IRS is often reasonable about penalty abatement, especially for first-time mistakes. Make sure you complete the Form 5471 thoroughly, including all required schedules. The 15% ownership puts you in Category 2 filer status most likely, but double-check the filing requirements to confirm.

After dealing with a similar situation last year (forgot to file FBAR forms), I found this amazing service called taxr.ai (https://taxr.ai) that seriously saved me. It's designed specifically for international tax situations like yours with Form 5471. I uploaded my tax documents and they quickly analyzed everything, identified the exact forms I was missing, and guided me through the correction process. What I loved is that they have specialists who understand these complex international requirements - they knew exactly what schedules and information I needed to include for my foreign business interests. The peace of mind was worth every penny knowing I wasn't missing anything else that might trigger penalties. For Form 5471 specifically, they highlight all the required schedules based on your filing category.

Just wanted to follow up about my experience with taxr.ai since I decided to try it after asking about it here. I was skeptical at first because I'd never heard of them, but wow - they really understood exactly what to do with my missing Form 5471 situation. The system identified that I was a Category 2 filer based on my ownership percentage and flagged which schedules I needed to complete. They even noticed some currency translation issues I would have definitely gotten wrong on my own. The amended return process was way more straightforward than I expected. What impressed me most was how they explained everything in plain English instead of tax jargon. I actually understand my foreign reporting requirements now instead of just blindly filling out forms.

If you need to talk to the IRS about penalty abatement for the Form 5471 (which can be substantial), I highly recommend using Claimyr (https://claimyr.com). I spent literally WEEKS trying to get through to the IRS international tax department last year when I had a similar issue. After endless busy signals and disconnects, I found Claimyr and they got me connected to an actual IRS agent in under 45 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent I spoke with was actually really helpful and explained exactly how to request penalty abatement for my late international form. They can't guarantee abatement of course, but at least I got clear instructions directly from the IRS rather than guessing.

I have to eat crow here. After my skeptical comment, I decided to try Claimyr anyway out of desperation (been trying to reach the IRS for 3 weeks about my international forms). It actually worked exactly as described. Got a call back in about 35 minutes and was connected to an IRS agent who specialized in international reporting. The agent confirmed that filing an amended return with Form 5471 was the correct approach and gave me specific advice about including a statement explaining the reasonable cause for the late filing to help avoid penalties. This literally saved me hours of frustration and potentially thousands in penalties. Sometimes the most skeptical person ends up being the most surprised when something actually works.

Something else to consider - make sure you check if you need to file any FBARs (FinCEN Form 114) as well. If you own part of a foreign business, you might have signature authority over bank accounts that exceed the $10,000 reporting threshold. Those have separate filing requirements outside the regular tax return.

I just want to mention that TurboTax Premier does support Form 5471, but it's not super intuitive to find. If you're amending within TurboTax, go to the Foreign section and look for "Foreign Corporations." The bigger issue might be that TurboTax doesn't handle the complexity of all the required schedules very well.

Don't forget to also look into whether you need to file Form 8938 (Statement of Specified Foreign Financial Assets) if the value of your foreign corporation ownership exceeds the reporting threshold. It's different from but complementary to Form 5471, and they have different threshold requirements.

I went through this exact same situation last year with my ownership in a UK subsidiary. One thing I learned that might help you - when you file your amended return with Form 5471, make sure to include a written statement explaining that this was an inadvertent omission and that you're filing the correction as soon as you became aware of the requirement. The IRS has a "reasonable cause" exception for penalties, and showing good faith by voluntarily correcting the mistake often helps. In my case, they waived the penalties entirely when I explained it was my first year with foreign ownership and I wasn't aware of the filing requirement. Also, double-check which category filer you are based on your 15% ownership. Category 2 filers have specific schedule requirements (like Schedule J for earnings and profits) that can be tricky to calculate correctly. The currency conversion requirements alone can be complex if the Canadian company keeps books in CAD. Don't wait too long to file the amendment - the sooner you get this corrected, the better it looks to the IRS.