Law & CPA offices of Zaher Fallahi

12/25/2025

🎄✨ Merry Christmas & Happy New Year! ✨🎄

Wishing you and your loved ones joy, good health, and peace this holiday season, and a New Year filled with success, happiness, and new opportunities.

Warmest wishes for a bright and prosperous year ahead! 🌟🥂

12/20/2025

Happy Shab-e Yalda 🌙🍉
On this longest night of the year, we celebrate Shab-e Yalda—an ancient Iranian tradition with roots tracing back more than four thousand years to the earliest civilizations of the Iranian plateau. Since antiquity, families and friends have gathered on this night to welcome the rebirth of light, the triumph of warmth over darkness, and the promise of longer days ahead.
May this Yalda night bring you light, health, joy, and togetherness, and may the coming days be filled with peace, hope, and renewal for you and your loved ones.
Shab-e Yalda Bar Hamaeh Farkhondeh Baad.
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شب یلدا مبارک 🌙🍉
در این بلندترین شب سال، شب یلدا را گرامی می‌داریم؛ آیینی کهن با پیشینه‌ای بیش از چهار هزار سال در سرزمین ایران. از دیرباز، خانواده‌ها و دوستان در این شب گرد هم آمده‌اند تا زایش نور، غلبه روشنایی بر تاریکی، و نوید روزهای بلندتر را جشن بگیرند.
امید که این شب یلدا برای شما و عزیزانتان سرشار از نور، سلامتی، شادی و همدلی باشد و روزهای پیش‌رو با آرامش، امید و تازگی همراه گردد.
شب یلدا بر همگان فرخنده باد
Baa Sepaas,
Zaher Fallahi

12/17/2025

Happy Hanukkah! May the lights of the Menorah spread hope, peace, and understanding across the globe this season and always.

12/08/2025

2025: A Window of Opportunity for Charitable Tax Planning Before New Rules Take Effect
By Zaher Fallahi, CPA, Attorney at Law
The One Big Beautiful Bill Act (“OBBBA”) will significantly reduce the tax benefits of charitable giving starting January 1, 2026. By contrast, 2025 offers far more favorable rules, creating a unique opportunity for donors to maximize deductions before the changes take effect.
For many individuals, especially high-income taxpayers and those with multi-year giving plans, 2025 may be the ideal year to accelerate charitable contributions, including through Donor-Advised Funds (DAFs).
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What Changes in 2026
• New 0.5% AGI “floor” for charitable deductions
Beginning in 2026, itemizers can only deduct charitable gifts that exceed 0.5% of adjusted gross income (AGI).
Example: A taxpayer with $1,000,000 AGI loses the deduction on the first $5,000 of charitable giving.
2025 advantage: every deductible dollar counts.
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• Deduction value decreases for high-income taxpayers
Under current law, charitable deductions offset tax at approx. 37%.
Starting in 2026: value drops to approx. 35%.
This makes giving more expensive beginning in 2026.
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• New above-the-line deduction for non-itemizers
Up to $1,000 (single) or $2,000 (married filing jointly) for cash gifts to public charities.
(Not available for DAFs or supporting organizations.)
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• 60% AGI limit for cash gifts becomes permanent
Helpful but partially offset by the new AGI floor and reduced marginal deductibility.
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Why Many Donors Should Give in 2025
• No AGI floor—enhanced deductibility
• Higher marginal deduction value under 2025 tax brackets
• Ideal alignment for those expecting unusually high 2025 income (liquidity events, QSBS, business sales, stock options, trust distributions)
• Greater control and efficiency for multi-year giving strategies
Any gifts deferred into 2026 or later will be subject to the new restrictions and lower tax benefit.
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Using a Donor-Advised Fund (DAF) in 2025
A DAF allows taxpayers to secure a full 2025 deduction while distributing to charities over future years.
Benefits of funding a DAF this year:
• Capture higher 2025 tax benefit
• Avoid the 2026 AGI floor
• Invest contributions tax-free within the DAF
• Maintain complete flexibility over future grants
• Support consistent annual giving while maximizing a single-year deduction
Example:
A donor intending to give $50,000 per year for five years may contribute $250,000 to a DAF in 2025, deduct the full amount now, and recommend $50,000 in grants annually beginning in 2026.
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Advanced Giving Tools: Charitable Trusts
For long-term and high-impact planning:
• Charitable Lead Trusts (CLTs): income stream to charity first, remainder to heirs.
• Charitable Remainder Trusts (CRTs): income to donor/heirs first, remainder to charity.
Both can create meaningful deductions and integrate with estate planning.
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Action Steps Before December 31, 2025
• Review whether accelerating gifts into 2025 increases tax savings
• Consider establishing and funding a DAF
• Model 2025 vs. 2026 outcomes with your CPA or financial advisor
• Confirm AGI projections and timely obtain charitable receipts
Charitable planning should be tailored to each taxpayer’s financial and estate planning goals.
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Zaher Fallahi, CPA, Attorney at Law (California and Washington, D.C.)
Zaher Fallahi is a dual-licensed Tax Attorney and CPA with extensive experience in tax law and audits, cryptocurrency taxation, and foreign inheritance and gift compliance. He represents clients nationwide.
Tel.: (310) 719-1040 | (714) 546-4272 | (877) 687-7558
Websites: zflegal.com | zfcpa.com
Email: [email protected]

12/05/2025

Don’t Let Holiday Gift Card Scams Ruin Your Season
By Zaher Fallahi, CPA, Attorney At Law
The holiday season inspires generosity and connection, but unfortunately, it also provides fertile ground for scammers, particularly those who use gift card fraud to target taxpayers. Since 2019, the IRS has received more than 1,000 gift-card-related phishing emails, and fraudulent activity is rising year after year.
One fact, however, remains constant:
The IRS does NOT request or accept tax payments through gift cards — ever.
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How Gift Card Scams Typically Work
Scammers adapt quickly, especially during the holidays when gift card purchases are common. They may:
• Impersonate the IRS or another government authority
• Send messages from hacked or spoofed email accounts
• Request “urgent” or “confidential” gift card purchases
• Claim the taxpayer is linked to criminal activity or owes a penalty
• Create fear and urgency to force immediate action
Criminals often ask victims to buy gift cards from multiple stores, then request the numbers and PINs. Once received, scammers drain the funds instantly, leaving taxpayers with no recourse.
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How to Know When It's NOT the IRS
Tax professionals and taxpayers alike should remember that the IRS will never:
• Demand immediate payment by gift card, prepaid debit card, or wire transfer
• Call to demand payment before mailing an official notice
• Threaten arrest, deportation, or license suspension
• Ask for financial information through email, text, or social media
If any of these occur, communication is a scam.
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What Taxpayers Should Do if Targeted
Victims or potential victims should:
• Report the incident to TIGTA via the IRS Impersonation Scam Reporting webpage or at 800-366-4484
• Report the scam to the FTC at ReportFraud.ftc.gov
• Forward suspicious emails to the IRS at [email protected]
Increased awareness during the holiday season can prevent significant financial losses and emotional stress.
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Final Thoughts
As CPAs, tax advisors, and financial professionals, we play a crucial role in educating taxpayers about fraud risks—especially those that spike during the holidays. A timely reminder can protect clients, families, and colleagues from falling prey to well-crafted schemes.
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About the Author
Zaher Fallahi, CPA, Attorney At Law, assists taxpayers nationwide with Cryptocurrency Taxation, Anti-Money Laundering compliance, Foreign Gifts & Inheritance reporting, Delinquent FBAR filings, IRS Audits, Tax Preparation, Offers-in-Compromise, and international tax matters.
📞 (310) 719-1040 | (714) 546-4272 | (877) 687-7558
🌐 zfcpa.com | zflegal.com
📧 [email protected]

11/27/2025

Happy Thanksgiving to all my colleagues — attorneys, CPAs, other professionals, and dear friends.

I am truly grateful for your support, your professionalism, and the spirit of collaboration we share throughout the year.

Wishing you and your families a warm, joyful, and peaceful Thanksgiving holiday.

May the season bring you good health, happiness, and continued success.

With appreciation

Zaher

11/24/2025

New IRS Guidance: Major Tax Breaks for Tipped & Overtime Workers in 2025
On Nov. 21, 2025, the U.S. Treasury and IRS released new guidance that may offer significant tax savings for millions of workers who earn tips or overtime pay.
While the official rules appear in IRS Notice 2025-69, below is a clear overview of what workers should know.
“No Tax on Tips” — Key Change”

From 2025 through 2028, workers who receive qualified tips may be eligible for a deduction of up to $25,000 per year.
Who may benefit
• Servers and bartenders
• Hotel and hospitality workers
• Salon and spa professionals
• Rideshare and delivery drivers
• Tour guides
• Individuals who receive tips, including the self-employed
Income limits
• Phases out above $150,000
• $300,000 for joint filers
How to document tips
Workers may rely on:
• Tips reported on a W-2
• Tips reported on Form 4137
• Tips reported to an employer
• Personal records for self-employed individuals
👉 Accurate records are essential.

“No Tax on Overtime” — New Deduction”
For 2025–2028, workers may deduct the overtime premium portion of their pay — generally the “half” in time-and-a-half wages.
Maximum deduction
• $12,500 per year
• $25,000 for joint filers
Key points
• Available whether or not you itemize
• Applies to legally required overtime premiums
• Certain exempt employees may not qualify
Examples
• Overtime premium of $5,000 → May deduct $5,000
• $15,000 total overtime pay → One-third ($5,000) may qualify
• Double-rate overtime → Only the premium portion counts
This guidance does not change labor rules; it provides a tax deduction opportunity.
Action Steps for 2025
📌 Track tips and overtime carefully
📌 Retain pay stubs, logs, and payroll statements
📌 Review updated IRS forms during filing season
📌 Confirm eligibility based on income limits
These benefits are not automatic—they must be claimed on the tax return.
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Why It Matters
• Millions of workers rely on tips and overtime
• Deductions may substantially reduce taxable income
• Self-employed individuals may qualify with proper documentation
• Non-itemizers may also benefit
In short: This guidance may create meaningful tax savings for eligible workers.

Zaher Fallahi, Tax Attorney & CPA
Advises clients nationwide on federal tax matters, including cryptocurrency taxation. Holds an MIT Blockchain Certificate.
📞 (310) 719-1040 | (714) 546-4272 | (877) 687-7558
🌐 zflegal.com | zfcpa.com
📧 [email protected]

11/15/2025

🔍 IRS Issues Rev. Proc. 2025-31: Staking Digital Assets in Trusts
The IRS has issued Revenue Procedure 2025-31, a landmark development in crypto taxation and digital-asset compliance.
For the first time, certain investment trusts classified as grantor trusts may stake digital assets without losing their favorable tax status. This new safe harbor provides long-awaited clarity for sponsors of crypto exchange-traded products (ETPs) and other blockchain-based trusts.
💡 What Changed
Previously, earning staking income within a grantor trust could have disqualified it from grantor-trust treatment. Now, under Rev. Proc. 2025-31, qualifying trusts may stake assets on proof-of-stake blockchains and still be treated as investment/grantor trusts for federal income-tax purposes.
⚙️ Key Safe-Harbor Requirements
✅ Hold only one type of digital asset and cash.
✅ Stake through a custodian that operates independently from the staking provider.
✅ Indemnify against slashing losses caused by validators.
✅ Maintain a liquidity reserve to meet redemption requests.
✅ Distribute staking rewards quarterly, in-kind or as cash.
✅ Amend trust agreements within nine months beginning Nov. 10, 2025 to comply.
🧾 Tax & Compliance Implications
Rev. Proc. 2025-31 addresses trust classification, not tax reporting of staking income. Key questions remain:
• How will Form 1099/1042-S reporting apply to staking distributions?
• What is the source and character of staking rewards paid in cash?
• How will withholding apply to non-U.S. investors?
Further IRS or Treasury guidance is likely as digital-asset taxation continues to evolve.
📈 Why It Matters
This safe harbor enables crypto-based trusts to participate in blockchain validation while preserving tax transparency, potentially improving both network security and investor efficiency.
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Zaher Fallahi, Attorney at Law & CPA
Crypto Tax Attorney | OFAC & International Tax Expert | MIT-Certified in Blockchain Technology
📍 Los Angeles & Orange County, California 🌐

We provide our clients with expert legal and tax advice on Foreign Bank Accounts, Voluntary Disclosure Program (OVDP), Tax Audit Representation, OFAC & Estate Planning.

11/05/2025

Summary of FinCEN’s Updated Suspicious Activity Report (SAR) FAQs (October 9, 2025)
By Zaher Fallahi, Attorney at Law and Certified Public Accountant (CPA)

On October 9, 2025, the Financial Crimes Enforcement Network (FinCEN), jointly with other federal banking agencies, issued updated guidance clarifying when financial institutions must file Suspicious Activity Reports (SARs). The new FAQs emphasize that institutions are not required to file a SAR solely because a transaction is near the $10,000 Currency Transaction Report (CTR) threshold. A SAR is required only when the institution knows, suspects, or has reason to suspect that transactions are structured or otherwise designed to evade Bank Secrecy Act (BSA) reporting requirements. In other words, proximity to the threshold alone, without indicators of intent to evade reporting, is insufficient to trigger a SAR obligation.

The guidance further explains that financial institutions are no longer required to conduct separate “continuing activity reviews” after filing a SAR. Instead, they may rely on their existing, risk-based anti-money laundering and counter-terrorism financing (AML/CFT) programs to identify and report suspicious behavior. For those institutions that choose to continue periodic reporting of ongoing suspicious activity, FinCEN restated, but did not mandate, the optional 90-day review cycle (with the follow-up SAR due within 120 days after the prior filing).

Finally, FinCEN clarified that there is no legal requirement to document a decision not to file a SAR. While institutions may elect to document their rationale internally, such documentation should be concise and proportionate to the situation. Overall, these updates are intended to reduce unnecessary compliance burdens, allowing institutions to focus resources on genuinely suspicious activity that has meaningful law-enforcement value.

10/25/2025

The Internal Revenue Service Math and Taxpayer Help Act (H.R. 998)
By Zaher Fallahi, Attorney at Law and Certified Public Accountant (CPA)
Licensed in California and Washington, D.C.
1. Introduction
As part of the 119th Congress, lawmakers introduced H.R. 998 – The Internal Revenue Service Math and Taxpayer Help Act on February 5, 2025. The proposed legislation seeks to improve how the IRS communicates with taxpayers when a mathematical or clerical error is detected on a tax return.
In my work assisting taxpayers with IRS correspondence and compliance issues, I have often observed that math-error notices are confusing or lack sufficient detail to help taxpayers understand the underlying issue. This bill represents a positive step toward greater clarity, transparency, and fairness in the IRS’s notice procedures.
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2. Purpose and Core Provisions
H.R. 998 would require the IRS to include clear and specific information in all math-error notices, ensuring that taxpayers understand exactly what went wrong and how to respond. Each notice must contain:
• A plain-language description of the error and the specific line item affected on the return;
• An itemized computation showing how the IRS corrected the issue;
• A telephone contact number for the IRS automated transcript service; and
• The deadline for requesting an abatement of any tax assessed because of the error.
The bill also mandates that when a math-error correction results in an abatement of tax, the IRS must issue a separate notice describing the abatement and each related adjustment.
Importantly, the Act directs the IRS to establish multiple ways to request an abatement—by mail, electronically, by phone, or in person—thereby improving accessibility for taxpayers.
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3. Certified-Mail Pilot Program
To enhance accountability and delivery verification, the Act requires the IRS to implement a pilot program using certified or registered mail for certain math-error notices. The agency must later report to Congress on the program’s results, including delivery rates, taxpayer response data, and administrative efficiency. The findings may help shape future standards for IRS communications.
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4. Practical Implications
If enacted, the Math and Taxpayer Help Act could strengthen taxpayer rights and administrative accuracy. Clearer notices and defined abatement procedures would likely reduce disputes and delays while fostering more trust in the IRS process.
For tax practitioners and advisors, the legislation emphasizes the importance of reviewing math-error notices in detail, as they may soon contain specific line references and computation data that facilitate faster resolution.
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5. Conclusion
Although technical in nature, the Math and Taxpayer Help Act reflects a broader effort by Congress to modernize tax administration and improve taxpayer communication. The measure underscores an ongoing shift toward transparency and procedural fairness within the IRS’s operations.
Zaher Fallahi, Attorney at Law and CPA, follows legislative and administrative developments affecting taxpayer representation and compliance procedures nationwide.

✅ What happened
• The bill was introduced in the United States House of Representatives on February 5, 2025. Congress.gov+1
• The House passed the bill (on March 31, 2025, by voice vote under suspension of the rules) “as amended.” Congress.gov+2Congress.gov+2
• The Senate received the bill on April 1, 2025 (legislative day March 31) and referred it to the Senate Committee on Finance. Congress.gov+1
• On October 20, 2025 the Senate passed the bill without amendment by Unanimous Consent. Congress.gov+2Quiver Quantitative+2
• On October 23, 2025 the Senate sent a message to the House about its action.

12/09/2023

Happy Hanukkah Everyone. May this Hanukkah Bring Peace to the Middle East.