This is a topic I posted on about 2 years ago. If you are receiving a check from OWCP and are also entitled to Social
Security Disability payments from SSA, you can get SSA to "pay" your
attorney fees as an "excludable expense." This also applies to other expenses related to your workers compensation such as paying for medical reports.
SSA has a document available
online explaining how to report your attorney fees paid in connection
with receiving FECA wage loss benefits from OWCP. The attorney fees (and other qualifying expenses) will be used
to reduce the offset amount. Please click on the link below to SSA POMS - DI 52150.050 - Excludable
Expenses, and carefully follow SSA's instructions:
link updated 1/26/15: the url below is correct, if the link does not work, cut and paste the link in your browser.
https://secure.ssa.gov/poms.nsf/lnx/0452150050
If this link does not work, do a google search for the document number "0452150050"