TODAY   |  June 03, 2013

IRS dancing video released as spending report looms

As the Treasury Department’s inspector general prepares to issue a report on IRS spending on Tuesday, a video was released to the public over the weekend showing employees line-dancing. The video, along with two others, cost over $60,000 in taxpayers’ money. NBC’s Peter Alexander reports.

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>>> the irs is facing scrutiny over millions of dollars spent on lavish conferences and we're learning more about the agency's targeting of conservative groups. nbc's peter alexander is at the white house with more details.

>> reporter: good morning to you. it's going to be another rough week for the irs with three congressional hearings scheduled and a new inspector-general report out that's going to show the irs spent roughly $49 million on at least 220 employee conferences over a three-year period that began in 2010 .

>> to the left.

>> the latest misstep for the irs this embarrassing video showing agency employees line dancing preparing for a 2010 conference. the video release comes ahead of a treasury department inspector general report exposing excessive spending at the irs along with the " star trek " parody, total cost of the videos over $60,000 taxpayer dollars. the ig's report shows the attendees received lavish perks like baseball tickets and stays in presidential suites. in a statement, acting irs head danny werfel insisted travel and training expenses have dropped more than 80% since 2010 . it's just another controversy adding pressure to the obama administration already under fire for the irs 's targeting of conservative groups. darrell issa released interviews with irs workers in cincinnati which he says show the target something back to washington . including this exchange. did your supervisor give you any indication of the need for the search, any more context? the reply, he told me washington , d.c., wanted some cases.

>> this was a problem created in all likelihood right out of washington headquarters and we're getting too proving it.

>> elijah cummings blasted the claims as inconsistent with the findings of the inspector general. meanwhile attorney general eric holder is facing renewed scrutiny over tactics his department used in investigations. some in the west wing privately say they wish holder would step down but recently the president expressed his complete confidence in his attorney general. savannah?

>> peter alexander , thank you.