If an estate received no income and made no distributions during the estate’s tax year, you generally will not need to file a federal fiduciary income tax return (Form 1041). However, several common triggers can still require a federal return or other federal filings even when no distributions occurred. This article explains the federal filing rules, how they interact with Oregon requirements, and practical steps an executor or personal representative should take.

Which federal returns might apply?

• Form 1041 (U.S. Income Tax Return for Estates and Trusts): File if the estate has gross income of $600 or more for the tax year, or if any beneficiary is a nonresident alien. See IRS guidance: About Form 1041 (IRS).
• Form 706 (U.S. Estate (and Generation-Skipping Transfer) Tax Return): File if the decedent’s gross estate plus certain taxable gifts exceed the federal estate tax exemption for the year of death. Check IRS instructions: About Form 706 (IRS). The exemption amount changes with year and law—confirm the applicable threshold on the IRS website.
• Form 56 (Notice Concerning Fiduciary Relationship): Use to notify the IRS that you are acting for the decedent’s estate. More info: About Form 56 (IRS).
• Employer Identification Number (EIN): Most estates get an EIN to open estate accounts. Apply: Apply for an EIN (IRS).

When you probably do NOT need to file Form 1041

You likely do not need to file a federal estate income tax return (Form 1041) if all of the following are true:

1. The estate received no gross income during the tax year (no interest, dividends, rents, business income, etc.).
2. No beneficiary is a nonresident alien.
3. The estate’s only activity was paying administration expenses from estate assets and distributing principal with no separate income.

Note: The threshold is based on gross income, not distributions. Even if you made no distributions, the estate’s receipt of income (for example, bank interest or dividends) can require filing if gross income reaches $600 or more. See IRS Form 1041.

When you do need to file Form 1041 despite no distributions

• If the estate earned $600 or more in gross income during a calendar or fiscal tax year (interest, dividends, rental, business income).
• If any beneficiary is a nonresident alien—Form 1041 filing rules apply even if gross income is under $600.
• If the estate elected to treat amounts paid to beneficiaries as deductible distributions (these situations often require a return to report the deduction and the beneficiary’s share).

Federal estate tax (Form 706) — different test

Form 706 is a separate federal filing that reports the decedent’s gross estate for estate tax purposes. Whether you file Form 706 depends on the value of the decedent’s gross estate plus prior taxable gifts, not on distributions from estate accounts. The federal filing threshold (the unified credit/exemption) changes periodically, so confirm the correct threshold for the decedent’s year of death at the IRS site: About Form 706 (IRS).

Oregon-specific considerations

Oregon has its own estate tax rules and filing requirements that can differ from federal rules. Even if no federal estate tax return is required, Oregon may require a state estate tax return if the estate exceeds Oregon’s threshold. The Oregon Department of Revenue explains state filing rules and thresholds here: Oregon Department of Revenue — Estate Tax. For Oregon probate and estate administration procedures, see the Oregon Judicial Department resources for probate.

Practical steps for executors and personal representatives

1. Gather documents: death certificate, bank statements, brokerage statements, retirement account statements, records of receipts and payments.
2. Determine whether the estate received any income during administration (interest, dividends, rents, capital gains, business receipts).
3. If the estate received income or has a nonresident alien beneficiary, obtain an EIN and prepare to file Form 1041. Apply for an EIN early: IRS EIN application.
4. Check whether Form 706 is required by comparing the gross estate plus prior taxable gifts to the federal threshold for the decedent’s year of death: Form 706.
5. Confirm Oregon filing obligations using the Oregon DOR estate tax page: Oregon DOR — estate tax. If Oregon estate tax applies, file the state return even if federal Form 706 is not required.
6. Keep clear records: even if you do not file Form 1041, keep documentation showing the estate had no reportable income. That protects against later inquiries or audits.

Common pitfalls

• Assuming “no distributions” means “no return” — distributions and income are different tests. Gross income, not distributions, determines Form 1041 filing requirement.
• Missing small amounts of interest or dividend income that push gross income over $600.
• Overlooking state filing requirements — Oregon’s estate tax threshold can be lower than federal thresholds.
• Failing to obtain an EIN when institutions require one to open or keep estate accounts.

Example hypotheticals

Deadlines and penalties

Form 1041 is due by the 15th day of the fourth month after the end of the estate’s tax year (generally April 15 for calendar year estates). Form 706 is due nine months after the date of death, though a six-month extension is possible. Late filing can cause penalties and interest. Check IRS pages for exact deadlines and extension procedures: Form 1041 and Form 706.

Helpful Hints

• Document zero income: maintain statements proving no interest, dividends, or other receipts if you decide not to file Form 1041.
• Obtain an EIN early — banks often require it even if you won’t file Form 1041.
• Confirm beneficiaries’ residency status — a nonresident alien beneficiary can change filing requirements.
• Check both federal and Oregon thresholds — satisfying one does not automatically satisfy the other.
• When in doubt, prepare a draft Form 1041 or consult a tax professional; their review can be quicker and cheaper than correcting missed filings later.
• Keep a simple accounting ledger of all receipts and payments; that record makes any later returns easier and protects you as fiduciary.