What client costs can my law firm be reimbursed for?

CosmoLex Team

Law firms incur many different types of expenses on behalf of clients, and many costs can be reimbursed in the course of client billing. It is important to understand what these costs are, distinguish between hard and soft costs, and make sure that fee agreements between you and your clients delineate these costs upfront so that clients aren’t faced with … Read More

Is recovering advanced client costs taxable?

CosmoLex Team

Correctly allocating advanced client costs to ensure the appropriate tax impact is applied is critical in order to avoid the Internal Revenue Service (IRS) audits and violations. These costs need to be allocated directly as hard (direct expenses) or soft costs (support expenses), with the tax treatment being applied differently to each. Hard costs as those associated with payments for … Read More