IRS Costing. The IRS will charge for direct and indirect/overhead costs for reimbursable work. If funds advanced to the IRS are more than the actual cost of performing the work, the difference will be returned to the Buyer. If the advance received is less than the actual costs incurred, the Buyer agrees to pay for the additional costs incurred and an amended Form 14417 indicating the increase in costs must be submitted along with additional funds. See OMB Business Rules for Advance Payment Policies. IRM 1.33.3, Strategic Planning, Budgeting and Performance Management Process; Reimbursable Operating Guidelines contains the IRS regulations applicable to costing its reimbursable agreements.
