Nightly News   |  June 02, 2013

More scrutiny ahead for the IRS

The IRS is expected to face another tough week with the upcoming release of a new report detailing alleged lavish spending of taxpayer dollars, NBC’s Peter Alexander reports.

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>>> hearings on their targeting of conservative groups and a new report inspector general report to be released detailing millions of taxpayer dollars spent on lavish employee conferences. and there's even a parody video that's surfaced featuring irs employees. nbc's peter alexander with that story.

>> reporter: the latest in a string of embarrassing videos showing irs employees line dancing .

>> i need a straight line .

>> reporter: was released just days ahead of the treasury department 's inspector general report exposing excessive spending at the agency. the irs says the video was produced for a 2010 employee conference, the same as this " star trek " parody. throw in a gilligan's island spoof.

>> hey, everybody, i saw a ship.

>> reporter: total cost, more than $60,000 for taxpayers. the acting irs head danny wuerffel said of the statement this conference is an unfortunate vestige of a prior era, travel and training expenses have dropped more than 80% since 2010 .

>> reporter: the obama administration is already under fire for the irs ' targeting of conservative groups with darrel issa today accusing the white house of lying and claiming interviews with irs workers in cincinnati show the targeting reaches back to washington .

>> this is a problem that was coordinated in all likelihood right out of washington headquarters and we're getting to proving it.

>> reporter: house democrat elijah cummings blasts those claims as unsubstantiated calling them reckless statements inconsistent with the findings of the inspector general. democrats say it is an irs issue, not an obama issue.

>> if there was somebody political involved in this, it never would have happened because it was the stupidest thing you could imagine.

>> reporter: facing new scrutiny, attorney general eric holder over tactics in government leak investigations with with republicans accusing him of making conflicting statements under oath.

>> i think that the attorney general has definitely lost the trust of the american people . when you are out in my district, people feel betrayed by the conduct of this administration and this attorney general.

>> there have been all kinds of accusations but i haven't seen anything that would prevent him from continuing to do his job.

>> reporter: and this week ahead, the white house is hoping to return the focus to the economy and immigration with senator schumer predicting that a bipartisan immigration bill will pass the senate by july 4th with as many as 70 votes.

>> peter alexander competing with a downpour in washington , d.c. tonight, thanks.