Detailed Answer — Do you need to file a federal return for the estate if no distributions were made?

Short answer: Possibly — it depends on what the estate earned and on separate federal filing rules. There are two different federal filings you should consider:

1. Estate income tax return (Form 1041)

   If the estate received income after the decedent’s death (for example, interest, dividends, rents, or other income items), the estate itself may have to file Form 1041, U.S. Income Tax Return for Estates and Trusts. The basic federal rule is that an estate must file Form 1041 if the estate’s gross income for the tax year is $600 or more. If the estate’s gross income is less than $600 and there are no other special filing triggers, the estate generally does not need to file Form 1041.

   Even if you made no distributions to beneficiaries, the filing requirement turns on the estate’s income, not on distributions. So an estate that earns interest or dividends after death may need to file Form 1041 even when assets remain undisbursed.

   See the IRS Form 1041 information and instructions: https://www.irs.gov/forms-pubs/about-form-1041 and https://www.irs.gov/instructions/i1041

2. Federal estate tax return (Form 706)

   Form 706, the federal estate (and generation-skipping transfer) tax return, is a different filing. You file Form 706 only if the decedent’s gross estate plus certain taxable gifts and adjustments exceed the federal filing threshold (the unified credit/exemption amount), which is indexed annually. Whether assets were distributed after death does not change the need to file Form 706. If the decedent’s estate crosses the federal exemption amount for the year of death, you must file Form 706 even if you never distributed property to beneficiaries.

   See the IRS Form 706 information: https://www.irs.gov/forms-pubs/about-form-706 and general estate tax guidance: https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax

Other federal considerations

• If a beneficiary is a nonresident alien and received income from the estate, special withholding or reporting rules can trigger a Form 1041 filing obligation even if the estate’s gross income is below $600.
• An executor should also file the decedent’s final individual income tax return (Form 1040) for the year of death to report income earned through the date of death and to claim refunds. This is separate from estate returns.

Massachusetts-specific notes

• Massachusetts has its own estate tax rules and a much lower filing threshold than the federal system. Massachusetts estate tax is governed by Massachusetts General Laws Chapter 65C. The state filing requirement is independent of federal requirements, so you must check whether a Massachusetts estate tax return is required even if no federal estate tax return is required: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXVIII/Chapter65C
• Massachusetts also taxes income. If the estate has Massachusetts-source income or Massachusetts tax consequences, follow the state filing rules under Chapter 62 and the Department of Revenue’s guidance: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62 and the Massachusetts Department of Revenue website (search for fiduciary returns and estate tax instructions at mass.gov).

Practical example

Imagine the executor opens an estate checking account and the bank pays $700 in interest during the estate’s first tax year. Even if the executor did not distribute money to beneficiaries, the estate has gross income of $700 and must file Form 1041. By contrast, if the estate had no post-death income and the gross income stayed under $600 for the tax year, Form 1041 generally would not be required.

Timing and extensions

• Form 1041 for estates on a calendar year is generally due April 15 following the tax year; you can request an extension with IRS Form 7004. See the instructions: https://www.irs.gov/instructions/i1041
• Form 706 (if required) must generally be filed within nine months after the date of death. There are limited extensions available. See: https://www.irs.gov/forms-pubs/about-form-706

Bottom line

Not making distributions does not automatically mean you can skip federal filings. File Form 1041 if the estate has $600 or more in gross income (or other filing triggers apply). File Form 706 only when the decedent’s gross estate plus adjustments exceed the federal filing threshold for the year of death. Always check Massachusetts estate-tax rules under M.G.L. c.65C, because state filing obligations may exist even when federal filings are unnecessary.

Helpful Hints

• Get an EIN for the estate early. The estate needs its own employer identification number (EIN) for banking and tax filing: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
• Keep clear records of post‑death income (interest, dividends, rents) and expenses (funeral, administration). Documentation determines whether Form 1041 is required.
• File the decedent’s final individual return (Form 1040) for the date of death. That is separate from estate filings.
• Check whether any beneficiary is a nonresident alien. That status can create withholding and reporting obligations for the estate even when gross income is below $600.
• Review federal estate tax filing thresholds for the year of death before assuming Form 706 is unnecessary. These amounts change by year and may affect your obligation to file.
• Remember Massachusetts estate tax rules under M.G.L. c.65C can require a state estate tax return even when no federal return is required: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXVIII/Chapter65C
• If you are unsure, consult a Massachusetts probate attorney or a tax professional experienced with estates. They can review income, assets, and filing thresholds to avoid missed deadlines or penalties.