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IRS Facing More Scrutiny

A new report could prove embarrassing for the IRS. Tracie Potts reports.

In Washington, the IRS is facing new scrutiny - and so is the Attorney General. 

There's a new Inspector General's report coming out tomorrow that says the IRS spent $50 million dollars on conferences over three years, and new videos have surfaced that could be embarrassing for the IRS.

The IRS spent $60,000 producing these videos for conferences - spoofs of old TV shows. 

The new acting IRS commissioner says training and travel expenses dropped 80% since 2010.

A new Inspector General's report details excessive spending at the IRS. "They ended up with free drinks, they ended up with tickets to games - basically kickbacks," said Rep. Darrell Issa, (R) California.

"It's outrageous. any kind of wasteful spending like this must be put down, particularly at these times," Senator Chuck Schumer, (D) New York.

The agency is still reeling from an earlier report that found it targeted conservative groups.

Three more hearings are scheduled this week. 

Republicans are pointing fingers at the white house. Democrat Elijah Cummings calls that "unsubstantiated" and "reckless" -- saying there's no evidence the President was involved.

Republicans are also shining spotlight on Attorney General Eric holder, who they claim lied under oath about whether he ever prosecuted journalists.

"I think that the attorney general has definitely lost the trust of the American people," Rep. Marsha Blackburn, (R) Tennessee.

"The President has confidence in Holder and I believe he's going to stay," Senator Chuck Schumer, (D) New York.

Another controversy taking center stage on Capitol Hill this week. 

Tracie Potts, NBC News.

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