In FYs 2010 through 2012, the IRS received funds from the HIRIF for annual direct labor and related benefit costs totaling $162 million cumulatively. However, our review of the IRSÂ’s records indicated that it did not account for or attempt to quantify any indirect costs during FYs 2010 through 2012. Based on the IRSÂ’s own internal cost accounting guidelines, the indirect costs associated with these direct labor charges likely totaled approximately $67 million for FYs 2010 through 2012. The excluded indirect costs relate to providing employees with the workspace, support, and ongoing access to the full range of tools and technology support necessary for the performance of their jobs. For example, while the IRS may have been able to place most new employees hired for the ACA in existing leased space, it still had to pay rent on this space, could not use the space for other purposes, and could not consider the space for inclusion in its ongoing space reduction efforts.