Short answer

If the estate produced no gross income after the decedent’s death (generally less than $600 in a tax year and no nonresident alien beneficiaries), you usually do not need to file a federal fiduciary income tax return (Form 1041). However, you may still have to file other federal forms—most importantly Form 706 (United States Estate (and Generation-Skipping Transfer) Tax Return)—if the decedent’s gross estate (plus certain gifts) exceeds the federal estate-tax filing threshold for the year of death. Also, you still must file the decedent’s final individual income tax return (Form 1040) for the period ending on the date of death when applicable.

Which federal returns can apply to an estate?

• Form 1040: The decedent’s final individual return for the part of the year before death. See the IRS Form 1040 overview: https://www.irs.gov/forms-pubs/about-form-1040.
• Form 1041 (U.S. Income Tax Return for Estates and Trusts): Required for an estate that has gross income of $600 or more during the tax year, or if any beneficiary is a nonresident alien. See the IRS guidance: https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-to-file-form-1041 and the Form 1041 page: https://www.irs.gov/forms-pubs/about-form-1041.
• Form 706 (Estate Tax Return): Required only when the decedent’s gross estate (plus certain prior gifts) exceeds the federal filing threshold for the year of death. The threshold and rules are set at the federal level and change periodically; see the IRS Form 706 page: https://www.irs.gov/forms-pubs/about-form-706.

How “no distributions” affects federal filing obligations

Whether the personal representative made distributions to beneficiaries does not by itself decide federal filing requirements. Two different legal tests control:

1. Income test (Form 1041): Did the estate earn gross income after death (interest, dividends, rents, business income, capital gains, etc.) of $600 or more in the estate tax year? If yes, Form 1041 is generally required even if you made no distributions.
2. Estate tax test (Form 706): What is the value of the decedent’s gross estate at death (including probate and certain nonprobate property) plus certain lifetime taxable gifts? If that combined amount exceeds the federal filing threshold for the year of death, Form 706 is required regardless of whether the estate has made distributions.

Examples (hypotheticals)

Example A: The estate holds a bank account producing $250 of interest in the year after death and no beneficiaries are nonresident aliens. Gross income is under $600—no Form 1041 requirement just for income; but you still must consider the decedent’s final Form 1040 and whether the estate’s overall value triggers Form 706.

Example B: The estate owns rental property that generates $10,000 in rent after death. Even if no distributions were made, the estate’s gross income exceeds $600 and you must file Form 1041 and pay any tax due at the estate level (unless income is properly distributed and passed through to beneficiaries via K-1s).

Example C: The decedent’s gross estate is large enough to require Form 706. That return is about estate tax computations and is triggered by estate value, not distributions made by the personal representative.

Other federal filing and timing points to know

• Final Form 1040 for the decedent: The personal representative usually files the decedent’s final individual return for income received before death. Deadlines and filing rules are the same as for living taxpayers; for guidance see the IRS Form 1040 page: https://www.irs.gov/forms-pubs/about-form-1040.
• Form 1041 timing: An estate that operates on a calendar year must file Form 1041 by the 15th day of the fourth month after the year end (generally April 15). Estates may use a fiscal-year accounting period; see Form 1041 instructions for details: https://www.irs.gov/forms-pubs/about-form-1041.
• Form 706 timing: Form 706 is due nine months after the date of death. You may request an extension (Form 4768). See the IRS Form 706 page: https://www.irs.gov/forms-pubs/about-form-706 and Form 4768 info: https://www.irs.gov/forms-pubs/about-form-4768.
• Penalties: Late filings or late payments can produce penalties and interest, so confirm filing requirements early and request extensions if needed.

Arizona-specific considerations

Arizona’s probate and estate administration rules govern who serves as personal representative and what they must do in state probate proceedings; see Arizona probate statutes: https://www.azleg.gov/arsDetail/?title=14. Arizona does not currently impose a separate state-level estate tax in the way some states do, but estate income that is taxable at the federal level may also affect Arizona individual or fiduciary income tax filings where applicable. Check the Arizona Department of Revenue for any state fiduciary-income filing rules and forms. When in doubt, consult an Arizona tax attorney or CPA about state filing obligations.

Practical checklist for the personal representative

1. Inventory assets and determine the estate’s gross value at death (including retirement accounts, life insurance payable to the estate, real property, bank accounts, brokerage accounts, and gifts subject to federal rules).
2. Determine whether the estate generated gross income after death (interest, dividends, rents, business income, capital gains). If gross income is $600 or more in a tax year, plan to file Form 1041.
3. Check whether any beneficiary is a nonresident alien; if yes, Form 1041 filing rules change even for small amounts of estate income.
4. Compare the gross estate (plus certain prior gifts) to the federal estate tax filing threshold for the decedent’s year of death. If the threshold is met or exceeded, prepare Form 706 or consult a tax professional; see: https://www.irs.gov/forms-pubs/about-form-706.
5. File the decedent’s final Form 1040 for the year of death as required.
6. Keep complete records of estate income, expenses, receipts, disbursements and distributions—even if you expect no federal return will be required—so you can support your conclusions if questions arise later.
7. Consult a CPA or attorney experienced in federal estate and fiduciary taxation if you are unsure; mistakes can be costly and the rules are technical.

Helpful hints

• Don’t assume “no distributions” means “no filing.” Focus on whether the estate earned income and whether the gross estate triggers the federal estate tax return.
• If the estate’s only activity is transferring assets directly to beneficiaries (nonprobate transfers such as pay-on-death accounts or beneficiary-designated retirement accounts), those transfers may avoid probate but can still affect federal estate tax exposure and income-reporting rules.
• Even if you don’t need to file Form 1041 for a given year, filing voluntarily can sometimes be useful (for example, to claim refunds). Consult a tax advisor before filing voluntarily.
• If a beneficiary receives income in respect of a decedent (IRD), special rules determine who reports and pays the tax; a tax advisor can explain whether the estate or the beneficiary reports the income.
• Deadlines matter—if you discover late that a return was required, act quickly to minimize penalties and contact the IRS or a tax professional about relief options.

Where to get official federal information

• Form 1041 (estate/trust income tax): https://www.irs.gov/forms-pubs/about-form-1041
• Do you need to file Form 1041? (IRS guidance): https://www.irs.gov/businesses/small-businesses-self-employed/do-you-need-to-file-form-1041
• Form 706 (estate tax): https://www.irs.gov/forms-pubs/about-form-706

Disclaimer: This article provides general information about federal and Arizona considerations for estate tax and fiduciary income tax filing. It is not legal or tax advice. Rules are fact-specific and change over time. For advice tailored to your situation, consult a qualified tax professional or an Arizona attorney experienced in probate and estate taxation.