tax costs

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Tax costs generally refers either to increased tax liabilities resulting from a corporate transaction or more frequently as a motion of a losing party to challenge paying certain costs of the winning party in litigation. A “motion to strike” or a “motion to tax costs” can be made in many circumstances by a losing party who has lost litigation and is ordered to pay litigation costs of the opposing party. Given litigation costs can be quite expensive, a losing party may challenge their responsibility for the litigation costs based on applicable laws or contracts controlling the situation.  

[Last updated in October of 2021 by the Wex Definitions Team]