our next guest, he wants to stop funding for the hiring of new irs agents who would enforce obamacarenthe agenda. joining us now is senator dean heller, republican from new jersey. i stress the word senator, and-- >> i've got it, stuart. >> and i've got nevada, it's nevada. i'm terribly sorry, sir. sir, can you get any democrat votes in the senate to defund irs getting involved in obamacare? >> well, i am hearing a lot of outrage coming from the left for the first time with in administration on some of the issues we've been dealing with the last couple of days. it will be interesting and i just got some data back from the state of nevada and start talking about the scandal going on at the irs and look at the question, do you want to hire 16,000 new irs agents to handle your health care? stuart, i'm telling you right now after everything they've done, and i know you hit this constantly and that's financial security, that's probably the most stressful issue in america today. is financial security. and yet, now we have the agency that probably has more impact on the success of your financ

know there has been no suggestion that she did anything improper about the president has the new acting irs commissioner to look at these questions about accountability and look at how measures are taken to make sure this doesn't happen again. this is a question i think it's appropriate just to the new leadership of the irs and the treasury. the irs is conducting a 30-day review. before you decide if someone is coupled we need to get the facts first and based on my understanding of the ig report this was not addressed. there is a 30-day top-down review by the new acting irs commissioner and i expect some of these issues will be looked at. >> for questions about who knew what a few weeks ago at the white house, to take the question back further, how was this allowed to go on for 18 months? the republic reports while this was still happening, groups complaining that they had been -- >> i think that's why there was an ig audit. but i take your question and that is why you saw the president's response which was very clear. he was outraged by the behavior and he thought the conduct was inappropr

former irs commissioner mark everson told fox news that the irs pays very, very close attention to thesebut the point here is it's totally appropriate for chairman baucus to raise that issue, but anything that the service would do in terms of looking at c4s should have been evenhanded, and it wasn't, and that's the shame here. >> reporter: as hearings get underway, the first scheduled for tomorrow at 9 a.m., congress will want to ferret out who allowed this uneven approach to examining tax-exempt requests and whether it may have been part of a political culture at the irs. during the past two decades, individual irs employees contributed $840,000 to political causes, but an overwhelming majority of that, two-thirds of that money, benefited democrats and liberal-leaning organizations according to a study by the center for public integrity. the irs commissioner in 2010 when conservative groups first became a target was douglas shulman. according to the federal elections committee, he contributed $500 to the dnc in 2004. uma, back to you. uma: doug, thank you very much. gregg: and we are wa

new window to go after the president's legacy item. jim tells us how. >> several republicans halted the irs's role as the enforcer in the new health careaw. >> if you can't trust them with taxes why do you trust with the health care? >> there is a massive amount of data from the affordable health care act is to make sure it doesn't get there in the first place. >> the government accountability office said the irs office has 47 different functions. >> they plan to hire 16,000 now irs fors for obama care and the inspector general expressed concern about the breadth of the responsibilities assigned to the ears. he said it is an unprecedented new role for the irs. it is the irs getting knee-deep involved and the administration of american health care. >> it will be governed by more than 20,000 pages. they will look at the exchanges and help determine the subsidies and which companies and individuals have to pay a.. the biggest insult the irs will determine if your insurance coverage is adequate. not you and your family but the irs. >> the irs, those are throw scary initials to most people. pelosi was discouraged by the repeal of the law. o

we got breaking news here with the irs.ou know, the interim irs commissioner announced that he was going to be stepping down, and, of course, this on the backdrop of the controversy here. well, now, the president is announcing that dan is going to be the new irs commissioner, comes from the office of management and budget, not the same that was the big american quarterback in the football league, no, not that guy, but this one comes from the omb, and as soon as we get more information op this, we will get it to you, but that was quick. you know, there were lots of questions and controversies swirling around the irs now, and now there's a guy at the top who gets to dole with it. i hope he has a gadget for the moment. as i mentioned, just a few minutes ago, cisco, you have to talk about this because it is affecting a lot of other stocks out there today. shares of cisco on a tear. today up 13% but up double digits after beating estimates for the third quarter. joining me now, the ceo of cisco, john chambers. i used to work whe

benghazi story, getting information out there on the irs story, also, effectively in taking swift, decisive action, getting rid of stephen miller. appointing a new acting irs commissioner. >> for four months. nobody is going to believe that that is any effectiveness at all. i got to go to you on this, this make nos sense. all right. keith is doing the best he can to spin this. but the reality is four months, can you not put a guy in. the second reality is the inspector general's report. some people think it's okay. other people are questioning it. you need a special council to go through wit a fine tooth comb. you also need a special council to make recommendations this won't happen again. the i.g. report doesn't do that. that's why i think today's actions guy was back paddling by the president. there is nothing going on here. >> well, with all respect to my friend keith, i think he's living in an alternate universe if he watches the press conference an thinks the president performed ably and made things better for himself. just the opposite. if we are focusing on one of the scandals the irs scandal. he as you mentioned declined the special pros

when you ask them question, should we hire 16,000 new irs agents, 61% said absolutely not. if you cannot trust them with your own taxes, if every business man comes up to me that is audited and wonders if the irs is doing it for political reasons, that is a difficult question for me to answer. >> i have said and the president has said that the actions here were unacceptable. there's nothing in the inspector general's report that suggested anyway there's any political pressure brought to bear. these actions were unacceptable and have to be corrected. they cannot be allowed to happen. we have to restore confidence in the irs. there are a lot of investigations going on right now. there are many committees, the justice department is looking at it and we have a new acting commissioner who will come in and do a top to bottom review, beginning tomorrow. >> thank you, mr. chairman. >> with the question was asked about the irs, you replied more or less. i believe in this and all matters that no one is above the law. as you said that, i was thinking about the situation with hsbc where

details in the irs scandal. new evidence that targeting of conservative groups was not only more widespread but also included high level officials. >> i see it as the arrogance of big government. >> i have not done anything wrong. >> remember the white house always said this was just rogue agents in cincinnati. but the new evidence shows dozens of letters with a stamped signature by the woman who headed the department in question, lois lerner. >> i have not broken any laws. i have not violated any irs rules or regulations and i have not provided false information to this or any other congressional committee. >> 25 groups filing a lawsuit against the irs today and the chief attorney represent hing them is jay sekulow. >> i have been advised by my counsel to assert my constitutional right not to testify or answer questions related to the subject matter of this hearing. >> i don't know what the department of treasury or what irs or what the white house is thinking. we have the documents because is we have been in dialo

you will see them try to find a big figure to replace to become the new irs commissioner. maybe it's a republican. maybe it's a top cop kind of guy, a military guy. they know they need to fix the credibility because that one could sting. >> our senior correspondent has been looking into this irs topic. the irs not a popular agency already. their job is to take our money, collect taxes. people hate the thought that it is being used for political purposes. conjures up for some of us of a certain age all kinds of bad memories. question to you is how deep do you think this goes? what came out today? >> well, i suspect we are just getting started on this. too much of what the irs initially told us was incomplete or has proven to be wrong. i think the republicans will be emboldened now that the irs commissioner has been forced out. house speaker john boehner began the day today saying he believed that laws were broken. he said, my question isn't who is going to resign. my question is who is going to jail over this scandal? now the irs continues to blame the targeting of conserva

more on our breaking news now, the growing scandal at the irs. port released from the treasury inspector general shows the agency deliberately targeted conservative groups. the report comes just hours after the justice department announced it's launching a criminal investigation into the matter. in a statement tonight, the irs responded to the inspector general's report, saying it's required to determine whether organizations political activities are permissible but acknowledge taking inappropriate shortcuts. dana bash is back with us along with senior political analyst david gergen. what can you tell us about this separate investigation, criminal investigation announced today out of the justice department? >> it was really a surprise by the attorney general who really sort of tumbled out of his mouth as part of a larger press conference. what he said is that the justice department, the fbi, they are looking into whether any laws were broken. he said obviously this is outrageous, unacceptable. he went a little bit into the specifics, saying that t

representative dean heller says no to the irs hiring 1,900 new agents for obamacare. politico says the irs wanted to know everything and i mean everything about tea party people and others. the irs scandal now threatens the obama agenda. and the government seizure of ap reporters phone records has finally turned the establishment media. maybe that's why stocks keep going up, scandal equals gridlock, equals rally? "varney & company" is about to begin. all stations come over t mission a for a final go. this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. >> all right. everybody, this is the financial headline of the day. the deficit is getting smaller. a lot smaller. the congressional budget office says it will be $400 million less than the trillion dollars deficit last year. it's down because of higher taxes. a 60 billion check to the

>>> breaking news on the irs. eamon javers has the details. eamon? >> hi, kelly. well, cnbc has confirmed that president barack obama is going to name as the acting commissioner of the irs daniel wefrl, he's the comptroller of the office of management and budget. not a flashy or high-profile figure here inside washington, but he's been a long-time washington player, known as a green eye shades guy, who's been responsible in his current role in implementing the governmental sequester and dealing with all the bureaucratic blocking and tackling involved in that. according to sources, a white house official telling cnbc the president will nominate mr. werfel as the commissioner of the irs on an acting basis and we can expect that announcement anytime now, guys. >> all right, eamon, we'll look forward to that. >>> meantime, gold is continuing to lose its shine today. bertha coombs is at the nymex with those details. >> interesting today, because we did have the dollar easing back and that did float some commodities, just into positive territory, but not gold, down

breaking news this hour is about the irs bureaucrat that envoked the fifth amendment on the tax agency scandal. lois lerner was placed on administrative leave with pay. mike emmanuel has more on what it means. >> moments ago, we learned that an acting replacement was put in her position. law makers want answers from lerner and the bottom line here, the investigation continues. ndrip, drip, drip. every day there is something new. >> after three congressional hearings. house boehner said it is fairly inconceivable that president obama anyhow. the lights are on but no one is home. the irs violated the rights of americans for two years. >> much of the investigation is on lois lerner who is accused of lying or misleading congress. lerner responded to a planted question that the oirs was targeting conservative organizations. lerner took the fifth yesterday and said she has not provided false information. >> i have not done anything wrong. i have not broken any laws. >> but expressing that defense chairman issa told fox, i think that testimony was germane. and issa concluded that her fifth am

neil: the irs now news that could make the irs six.they should be cut out of the health care law altogether and thousands of agents and tired. all right, scotty, what do you make of this? >> this makes just as much sen sense, you need to have them do open-heart surgery on you. the irs never should have been charge of obamacare. the last three days of scandal coming out, who is to say these death panels may not be coming true. neil: at very least, bad timing. what do you make of this? >> this raises significant questions about the irs role in overseeing and administering obamacare. the irs is in charge of administrating the premium subsidies. one of the things that has come out is the irs targeted groups that opposed obamacare. do you want the same people who targeted those groups now overseeing the law? neil: you do, right question you don'you? >> i do want to say it is rotten, but they're not going to force it, who will? the irs cannot afford the component of the health care laws. neil: do you feel at all weirded out by this the irs i

does anybody in here feel comforted that the new irs agent in charge of your medical records will be the same agent in charge of targeting the tea party? i think, really, there's going to be such a level of distrust, such a level of feeling that how will they ever cross that barrier again, i think that's going to have to be an independent commission. i don't see any way the president can gain back trust. [applause] for goodness sakes, somebody has to be fired. if not, go to prison. [applause] the president doesn't think you're smart enough to take care of you so he has obama care. i want to tell you how. they used to have 18,000 medical codes. i mark a code, billed down, and obama's going to make you healthier, there's 140,000 codes. including among these codes are 3 # 12 new codes for injuries sustained by animals. among the codes is 72 new codes of injuries accident sustained m birds, including nine new codes of injuries sustained by the ma call. i've been in practice for 20 years and never seen that injury, but i am waiting. [laughter] there's two new codes to keep you safe and he

irs. there is a lot more. gerri: those are abc newsnd fox has not confirmed that but that really adds an interesting edge to this conversation. thank you for coming on we will talk to after the hearing to find out if you got the answers you wanted. we appreciate your time. when we come back you will see me test drive some of the hottest luxury cars out there. , long for the ride. they buzz and they seeing a end endangered and in our greenroom and why honeybees are dying off and buy a matters. in the green room right now. ♪ at od, whatever business you're in, that's the business we're in with premium service like one of the best on-time delivery records and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world keep promises. she's always been able it's just her way. but your erectile dysfunction - that could be a question of bod flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is t

if you think about it, giving the irs those immense powers, it's inconceivable. we have the news that the woman who was the commissioner of tax exempt organizations at the irs during the time the irs was targeting conservative groups, she has been moved on to a new job. guess what division he is running. she is running the obamacare office. >> paul: that is real confidence booster. [ laughter ] >> why the irs so deeply involved. >> somebody has to enforce it. if you going to enforce health insurance, somebody has to enforce it. >> the thing about the tax system and irs, there are a lot of criminals exploit. there is medicare and medicaid fraud. they know systems will be set up to exploit obamacare criminally. they will set up a dragnet to catch people which they are not very good. in the meantime, innocent people employers who are trying to juggle these new rules are going to get caught. >> paul: is there anything here that congress can do about this? could it really "x" out the irs and give it to somebody else? >> we've seen a lot of funding battles in congress how much money ar

>>mark: welcome back to the kron4 morning news. irslans to plead the fifth when she appears today before the house oversight and government reform committee. let's take a live listen. >> new processes have been put in place to prevent these abuses in the future. but, much more needs to be done. according to the ig audit, at least part of the reason of the reason for the mismanagement, is an adequate guidance on how to process these cases. the original statute passed by congress requires 501 at sea for organizations engaged exclusive. but in 1959, the treasury department issued a regulation that relie.. >>mark: will continue to listen. a lot of outrage in washington today. testifying today is irs official lowest lerner plans to plead the fifth when she appears today before the house oversight and government reform committee. letterheads this section of the international revenue service placed under extra scrutiny that the scrutiny conservative groups that applied for tax-exempt status. her attorney says requiring water to appear today "

answers. >> 16,000 new irs agents?is policing the health care law of with thrills over which to what has the i.r.a. is already chopped the gut -- dropped the gunthat they're ready issues being raised of the agency's seizing improperly received medical record 10 million americans? that is a lot. >> it is devastating and i am not surprised because the past week the irs made a very obvious they're operating with the underlying political agenda and theye willing to violate the constitution to do so with the first amendment targeting conservative and religious groups that now wi the fourth amendment to a not3 lawfully seized medical records these innocent americans. john: we don't knowow their political persuasion or maybe if this was part of what the eventual job would be and they jumped the gun? >> this is clearly a mistake 60 agents went in to seize documents with a related tax lawsuits to take a medical records these agent were clearly not the best and brightest dis. >> doesn't that give y pause? this is just a preview

david: and late-breaking news on the irs. the president just appointing daniel werfel as acting commissioner of the irs. you may remember he currently works as controller of the office of management and budget, and he was overseeing the sequester spending. so very interesting pick there. "after the bell" starts right now. ♪ ♪ david: with dell and jcpenney due to announce any moment, we've got a very busy hour. let's get right to the action. we have david sowerby, he is here with three big stock picks to make you money. hi there. and we have dennis kneale and adam shapiro standing by as we wait for dell and jcpenney earnings coming out. adam, we got dell. go ahead, adam. what are the numbers? >> well, on earnings per share, 21 cents. the street was expecting 35 cents, but remember what was leaked to "the wall street journal" was 20 cents. 14.1 billion in revenue. quote from dell, we made progress in building our enterprise solution capabilities in the first quarter, and we're confident our strategy to be leading provider end-t

. >> outrage is growing over news that the irs gave extra scrutiny to politically conservative group. we have how the president addressed the issue for the first time today. >> reporter: president obama says he will not tolerate political bias at the irs. >> people have to be held accountable and it has to be fixed. >> reporter: answering questions at a news conference with britain's prime minister, the president said that he first learned the tax agency singled out conservative group from news reports. the irs apologized for scrutinizing groups with the words tea party in their name. >> if you have the irs operating in anything other than a neutral and nonpartisan way, then that is outrageous. >> reporter: the white house is waiting for a full report from the inspector general. but congress isn't. lawmakers are pushing for hearings to get to the bottom of how this happened. >> they should apologize to the american people for this. this is a big deal and we won't let it rest. >> reporter: rest. >> reporter: austin peterson is trying to figure out if his group, freedom works, was a tar

news alert. there are breaking developments tonight out of washington regarding the irs enemy's list scandal. a short time ago fox news learned that a second top official at the tax agency has announced plans to resign. now for the latest on the fallout surrounding the scandal and much more we head to washington. doug, what's the latest? >> the second ira executive to announce his plans to retire is joseph grant, commissioner of the tax-exempt entities division. he's an 8-year vet and former staffer of the house ways and means committee. that's the tax writing committee on the house side. surprisingly he was promote today his position only eight days ago, two days before the scandal broke. previously he worked for the democratic majority of the powerful ways and means committee. under the former illinois congressman. irs employeesed thousands to causes but two-thirds benefited democrats and liberal leaning organizations. one of those donors was douglas shulman. he was a george bush appointee and contributed $5,000 in 2004. the first hearing on the irs scandal commences tomorrow at 9:00 a.m. in

irs scandal. as i mentioned earlier, a new headline out just now from the associated press. "inspector general, ineffective management at irs allowed agents to target tea party groups." wow. the "washington post" reported earlier today this case was not confined to that office in cincinnati. the office that had been tasked with reviewing the non-profit groups. "post" reports additional irs employees in washington, d.c., and out in california also looked at the tea party groups to determine their eligibility for tax exemption. the irs says steven miller who's been serving as acting commissioner since last fall was told this has been happening, well, was happening back in may of 2012, about a year after lois lerner who oversees that division was informed herself. miller wrote in "usa today" in an op-ed piece in part, quote, we should have done a better job of handling the influx of applications by advocacy groups. mistakes were made but in no way due to political or partisan motivation. he also said there was a shortcut taken in our processes to determine which groups needed at

now the acting irs commissioner is heading out the door, but was he thrown under the bus? but first tonight, fox news chief congressional correspondent, mike emanuel. mike? >> house speaker john boehner sent a message today that he was looking for more than somebody to resign from the irs. boehner says this question, who's going to jail over the scandal? republican leaders clearly this is much bigger than acting commissioner steven miller, and though he's on his way out, the hohouse ways and means committee says the hearing set for friday morning will still go on and miller will be there. darrell isa sent an email to miller today requesting transcribed five interviews with employees. they won't be under oath, but it is a crime to lie to congress. it is clear key lawmakers don't believe the irs cincinnati office was acts on its own against conservative and religious groups seeking tax exempt status. greta? >> greta: mike, thank you. we're learning more and more from the just-released benghazi emails. james rosen joins us. james? >> most of the 94 pages of emails that were released late tonight were ty

going, you know, full throttle to get the irs involved in the implementation of enforcing a lot of these financial provisions and cost provisions within the new health care law. do you think they should slow down on that or what? >> there is 49 separate areas of health care law that the irs, who has proven itself not to be impartial in terms of political philosophy, probing into every aspect of american people's lives. so i think the question remains open. the fact is we've had severe abuse of power ongoing with this irs denial of appropriate benefits. these are really serious times and the really sad part about it is as americans we're already pretty cynical about the effectiveness of washington and the agencies that we have set up and here is one that we're supposed to be able to trust and obviously you can't. and i think a lot more is going to come out. we're going to have to get to the bottom of it. when the former commissioner of the irs actually knew what was going on and testified that he didn't, you know, that's at the top. and that speaks terribly for all the good people who work for the irs. so i think there ought to be a timeout, e

thing that the administration is trying to win the picture on this is friday night, they asked the new irs embark on an investigation that will bring back information in 30 days. they're standing strong and saying, look, we had nothing to do with this. we're trying to move this forward. >> calls for special counsel from senator portman from congressman price, he's not quite there yet, do you see this as the next step or the congressional investigation is going to sufficient? >> definitely going to have a congressional invegs gags. if any hint that -- i mean, a blind copy e-mail to the white house and this thing is really big. if after a thorough investigation, it stopped inside a poorly managed, it's just a severe problem for the president. >> sure. but let's start from the bottom up. let's find out that group in iowa, a right to life group, it was told that it would get its tax-exempt status if they didn't plan to picket planned parenthood. tennessee group said your entitlement to this status will be contingent upon you telling us the high school and college students that you trained to p

directly ahead some believe the new irs scandal is new watergate which happened 40 years ago what does brit hume think? he will be here. duck dynasty guy will enter the no spin zone. why is that program so popular? th willing bill hume zone segment tonight. we know the irs not telling the truth last year when he said his agency did not target conservatives. some pundits believes this elevates the story to almost watergate status and might involve president obama. 40this the had 00th anniversary. -- income tax audits or other income tax investigations to be initiated or conducted in a discriminatory manner section 1, article 2 the impeachment articles of richard nixon. bill will joining us now from washington fox news chief political analyst brit hume. before we get to mr. will and his assertion that there is some linkage between the irs and watergate, my point to karl rove was that by making commercials about hillary clinton's participation, i think that's a fair word, in benghazi, the republicans, rove, his group crossroads, give a shield to the secretary and to the president to say i

. >> eric: the irs is going to hire 15,000 new irs agents to administer obamacare.bout they hire another 5,000 agents that can make decisions for veterans that are waiting to on get benefits. a lot of backlog, people will sue each other. i think i need more. we say look, let's get 10,000 agents for the veterans administration and let them make the decision on exactly what they can do. be generous when you are making those decisions. >> bob: and department of defense is late in getting the files of these guys who are veterans to the v.a.. these guys file for benefits and the v.a. comes up with nothing. we don't know this guy was injured. meantime, the defense department haven't been talking to them them how injured have they been. we don't have you on record bruising your arm. it's back in the defense department. >> eric: they need bodies. >> bob: they need bodies and they need to have some intelligence here. if you can run a military which is best managed operation of the federal government you surely can take care of the people that work for you. >> kimberly: we we

last ditch effort to save himself but i would point* out that notice the president did not tell the new irset with citizens who were targeted by their agencies only the press gets the royal treatment. lou: he wanted them to meet with reporters not the general counsel does that alarm you? >> meeting with lawyers always alarms me. [laughter] but the problem is that eric holder is not admitting what he did. he signed the warrant, he signed the change that is basically to say if you are soliciting information for someone who has classified information and if you are flattering the source you may be creating espionage. that is what he has to come to grips with and the media has to hold him accountable. lou: now secretary of state john kerry to talk about the transfer of the russian missiles which some in the national media have reported moved into syria although they have not been no news of the aircraft we do not seem to have a handle on initial reports it turns out now and if it is true just as the israelis said. where are we headed with syria? there are conflicting reports and signals from th

but you may not know the irs is using new tactics to zone in on tax evasion. >> everyone is concernedabout the irs. >> i'm honest about everything. i don't worry about it too much. >> reporter: the good news is there's some things you can avoid doing so you don't become a statistic. first, don't go bragging on social media about nonpayment or underpayment of taxes. sounds simple but you'd be surprised how many people do it. second, if you're buying or selling something online, don't exaggerate and declare a different value on your tax return. they could easily find a discrepancy. consider information posted online to be public. there's no reason to think the irs isn't poking around on the web. this was always known to people in the tax community that the irs, like everybody else in the 21st century, was monitoring online, says a professor another cardoza law school. third, don't claim noncash deductions on your tax return that aren't reasonable, things like cars and clothes. if the amounts seem too high, the irs will take notice. last, don't file information that's not going to match

would cease to ask appropriate questions, whether it's theç irs scandal, the events surrounding benghazi or the department of justice. >> a newnnipiac poll shows his approval rating has dropped to 45%, a loss of three points since may 1st, before the irs admitted targeting conservative groups. meanwhile 76% said a special prosecutor should be named to investigate the irs situation. the white house is also on defense over holder's claim to congress that he had never been involved in any possible prosecution of a reporter, just days before it was revealed the attorney general himself signed off on labeling fox's james rosen a potential criminal co-conspirator. >> was he not telling the truth on that? >> he was involved in it. >> involved in what? >> he signed off on the search warrant. are you not involved after signing off? >> i'd refer you to the justice department. >> the poll also shows on benghazi, the percentage of people who believe the administration mislead the public increased five percentage points. over the same time period people who believe the administration shared facts has dropped from fm 47% to 41%. >> for me

irs controversy. this is the question from a bloomberg reporter at the news conference: can you, mr. t, assure northwestern people that nobody in the white house knew about the agency's actions before april 22-inch the agency -- -- she was referring to at the irs, one more time -- duassure the american people in the irs knew about the agency's acts before your counsel's office found out april 22nd. roll it. >> let me make sure that i answer the specific question. i can assure you that i certainly did not know anything about the ig report before the ig report had been leaked through press -- through the press. typically the ig reports are not supposed to be widely distributed or shared. they tend to be. a process that everybody is trying to protect the integrity of. >> he said led let me make sure i answer your specific question and then he did not answer the specific question. why? her is the question: can you assure the american people that nobody in this white house knew about the agency's actions before your counsel found out? the allegation is that the irs was targ controversitive

the woman who backed the tax exempt organizations during the time the irs was targeting conservative groups, she's been moved on to a new job. guess what division she's running? she's running the obamacare office with the irs. >> paul: that's a real confidence booster. >> one of the questions you have to ask is why the irs is so deeply involved. >> paul: somebody has to enforce it. if you're going to force people to buy health insurance or pay a fine, somebody has to enforce it. >> the thing about the irs and tax system is there are a lot of criminals who exploit it. there is tax credit fraud, there is medicare fraud. and they know, it has been talked about, the systems will be set up to exploit obamacare criminally. so they're going to set up this dragnet basically that joe was describing to try to catch those people. which they're not very good at. in the meantime, innocent people, employers who are trying to juggle all of these new rules are going to get caught in that dragnet. >> paul: is there anything here, and we don't have a lot of time, that congress can do about this? could it really x out the irs and give it

. >> this is a fox news alert. the irs executive who was head of the division targeting conservative groups is now running the obamacare office at the irs. abc political director rick klein reports us. abc news broke that story tonight. who is she? >> sarah hall ingram and she was in charge of the whole commission that takes care of the tax exempt groups. they are the ones overseeing the whole division in cincinnati that was targeting tea partyers. she was in charge of it during the entire period. she's been in the new job about a week. the guy who took her place in that job, joseph grant, he's actually -- they announced his resignation today. he would be retiring in a couple weeks anyway and looks like he's taking the fall for something that happened on his watch. >> he was only there eight days and he's shoved out the door. this woman, now her job is very controversial, obviously under the spotlight with those groups being targeted. but now this other job, what's the other job she has being in charge of obamacare? >> oba

irs is an independence agency. >> apologized for unfairly targeting conservative groups and blamed low level employees for what it calls inappropriate behavior. cbs news has obtained a draft copy due out later this week. shows senior irs officials knew that tea party and other conservative groups applying for tax exemptp status were being red flagged. the irs revelations are adding for the mistrust americans had for government. >> i don't care, this should send a chill up your spine. >> law makers raise concerns over irs practices last march. at that time, the agency's commissioner died any wrongdoing. >> there's absolutely no target etting. >> people telling lies about it being done. >> two investigations are underway and more are expected. cbs news, washington. >> irs commissioner stepped down last november when his term ended. >> wall street is lacking for four straight weeks of wins. the dow grew by 1% alone last week. up 15% so far this year. it's been a great year. 36 points on friday . the nasdaq closed 27 points higher on friday as well. the u.s. government has biggest budget surplus in five years. it was $113 billion in the black in the month

. >> gregg: new developments in the irs scandal. n interview with bloomberg news, the treasury secretary jack lew admits that he learned irs was being investigated it had targeted conservative groups for extraout any raising new questions how deep the scandal reaches into the obama administration and in the white house. i'll gregg jarrett. welcome to america's news headquarters. >> arthel: the news about the comes as irs commissioner sara up gram that once headed up the office is now charged are in charge of overseeing obamacare. >> reporter: democrats say it was a group within the tax exempt division that sara ingraham had had eded that targeted conservative groups. that she was not involved. the republicans are dubious and say, sara ingraham certainly be headed up the much larger job of implementing obamacare. but she is. she is in charge of the new health insurance and new fines associated with obamacare. that worries some in the g.o.p. >> so she provided horrendous customer service under her watch and now she is going to do the s

irs. senate finance committee holds its hearings this week. we're joined by two senators on that committee, republican rob portman and bob menendez from new jerseyprice and charles rangel. let me begin with you, senator portman. the allegations have been looked at the white house, the inspector general of the irs and this house committee has had its hearings. so far, no evidence at the white house knew of the wrongdoing in cincinnati. do you accept that first of all? and given that, what's the most important unanswered questions at your hearing this week? >> well, george, first, we just don't know yet. there was an audit done by an inspector general. but, we haven't had an investigation yet. that's why a bipartisan investigation is necessary. i also think that a special counsel is going to end up being necessary here. because it has to be independent of the white house. what we do know is, politics was put ahead of the public interest. it was done in two of the most sensitive areas of our government. the first, the tax collection agency. and second, our national security. second, look, i was one of the people that sent a letter, in march a year