irs commissioner john koskinen asking congress for more money as the irs continues to make billions in improper payments to illegal immigrants. senate finance committee member senator mike crapo will join us to talk about whether the irs will get any more of our money or whether it will be cleaning house? >>> we begin tonight with another heinous and barbaric murder by the islamic state terrorists. a gruesome act that according to jordanian officials happened a month ago. fox news chief intelligence correspondent catherine herridge with the report. >> reporter: the father of the jordanian pilot lieutenant moaz al-kassabeh overcome by grief after learning the news his son was dead, burned alive by isis terrorists. the jordanian government was quick to confirm what it called an assassination which would not go unanswered. >> whoever doubted the unity of jordan will be proved wrong. whoever doubts jordan's stern and lethal response will be proved wrong. >> reporter: mr. obama condemned isis and yet another savage act. >> we'll redouble the vigilance and determination on the part of a glob

this is just over two hours. >> welcome to the irs commissioner john koskinen. also fiscal year 2016 budget proposal. commissioner koskinen. more than 152 years ago the finance committee received a letter from george butwell who president lincoln had apointed as the first commissioner of the international revenue. the letter came in response to an inquiry from the committee seeking information about the commissioner's organization, his budget and the activities of his office. does that sound familiar? in his letter, dated january 21st, 1863, commissioner bodwell tried to answer the committee's questions by starting by first asking congress for more money. specifically he wroelt, quote, before proceeding to estimate the expenses of assessing and collecting the revenue, i desire to express the opinion that an increase in the pay of assessors is very important if not absolute necessary, unquote. now, that part does sound familiar to me. absolute necessary unquote. now, that part does sound familiar to me. as you and i continue this historic and important relationshi

stuart: john koskinen also told congress that illegal immigrants who do not pay taxes will be able to earned income tax credit and they will get money from the treasury as soon as they get a social security number. i think that this applies to the amnesty. >> yes and the earned income tax credit this will arouse republicans as much as it's out itself there, the thought that money could be paid from the treasury to people that are here illegally and have never pay taxes. it's not like they are getting taxed with something they overpaid. this is an inducement for them to come here and an inducement for them to stay here and it was not created by the congress but done by the presidents on lawful and unconstitutional use of the law-abiding powers. >> it is profoundly unconstitutional state on the earned income tax credit goes to people of a very low income. they are working, they are on the books. the treasury says that we will give you a check every january. >> usually, and under the law after they have worked and after they have earned income after they have filed taxes and pay taxes. >

commissioner john koskinen will testify on capitol hill.ll include the agency's money trouble. >>> time now for the the good, the bad, and the ugly. up first the good. some real in-flight entertainment. ♪ >> this barber shop quartet breaking into song to help make the wait for take off a little less agonizing. the bad, a dog running down a highway bringing traffic to a standstill. a biker tried to capture the run away pooch but was unsuccessful. finally the ugly, how long is winter if your groundhog is grumpy. the groundhog biting the mayor's ear in wisconsin but looks like spring is on the air. >> looks like it was just inevitable. >> "fox & friends" starts right now. have a great day. bye. >> yes it does. good morning to you. it is tuesday february 3. i'm ainsley earhardt filling in for elisabeth this morning. we start with a fox news alert. a deadly winter storm bringing travel for millions to a standstill. commuters waking up to black ice plunging temperatures and piles of snow. plus more bad news. we are tracking another storm on the w

the internal revenue service with the commissioner, john koskinen. with w-2 forms in the mail and the tax season beginning, our country's annual headache is now setting in. and i want to emphasize that today taxpayers reside in two separate worlds. in one world a middle-class office employee pays taxes directly out of her wages and she is subjected every spring to the painstaking process of filing returns. colleagues for that office worker there are no complicated tax avoidance strategies at her disposal. she doesn't have any shelters. she doesn't have any vehicles for her to hide her income. meanwhile, in the other tax world, teams of accountants go out to pry open loopholes that are hidden in the tax code, and the line between right and wrong is murky at best. the inherent unfairness of america's tax system is a blow that falls hardest on the middle class. and it takes a number of forms. the most obvious is that every year families spend more time and money filling out their taxes. people are worried about compiling all their records completing all

. >>> irs commissioner john koskinen today trying to make a case for more funding despite a string of scandals at his agency. he testified before the senate finance committee today. >> i would note that we're not asking for more money over history. we are asking for money back that's been taken away. we are actually doing significantly more with significantly less. there comes a point at which you have to do less with less, because you have reached that point. my concern for the last year has been that we are beyond the point of being able to do more with less. we are at a point where we have no choice but to do less with less. >> joining us now, senator mike crapo, one of the law makers on the committee who today questioned the agency's head. he serves on other key committees including budget, banking, housing and urban affairs and environment and public works. senator, great to have you with us. your reaction to the director. >> well, frankly this is just remarkable. here we have the internal revenue service as you said facing scandal and asking the american people to have a massive

gerri: you heard what the irs commissioner says john koskinen we don't have enough money, a budget, theyet $2.9 billion every year. this is more than the sba and i.c.e. combined. this is a big chunk of change. and lots of he will embarassments with this agency, right? we talked last week, i believe about a new ig report out on the agency that says, they're hiring back people who failed tests to get into the irs. these are people who have failed to pay their taxes. this isn't a question of do you have enough money. this is a question are you capable of making the right decisions? i think there are fundamental questions we have to be asking tonight about how good after job the irs is doing? are they competent? what do you say to that? >> well, i no, i don't think they're competent. i think they have been asked to do too much. part of the problem is the congress has forced them to manage all of these programs to the tax code. like the earned income tax credit which now has about $15 quintillion a year worth of fraud that goes through that program alone -- $15 billion a year. working for pay

>> well gerri irs commissioner john koskinen said taxpayers can expect miserable and abysmal service from his agency this filing season. he blames a lack of funding. irs is asking for nearly $13 billion to do its job. congress gave it about 11 billion. with its targeting of conservative groups applying for tax exemptions and expensive conferences and employing workers owing back taxes, republicans say the irs should simply make better spending choice. >> how do you think that the american people will feel about just your coming here and asking for more money. >> we're not asking for more money. over history. we're asking for money back that's been taken away. we're actually doing significantly more with significantly less. there comes a point at which you have to do less with less. >> koskinen also says the irs reformed many of objectionable practices. he personally signs off on any conference costing more than $50,000. he says while congress continues to cut or flat line its funding, it also gives the irs more tasks, more enforcement initiatives. he points out in the most recent irs

yet, is the head of irs john koskinen, the guy who stonewalled congress about all that repression andn of conservative groups who were looking for tax exemptions, and now this. i think he is 0-2. gerri: so many problems in the irs. we've seen it over and over again. and they say you know we're underfunded and can't do the job we need to do. >> yeah. gerri: i see missteps all along the way. seems more like a bureaucracy run amok. what do you say? >> i agree it's a bureaucracy run amok. they want more money. it would only subsidize the incompetence of people who were there. i mean irs needs to be reformed completely, so it works correctly and also, gets the political adventures that go on. the one we saw when they were persecuting conservative groups and not giving them tax exemptions. a lot needs to be changed there. gerri: a lot needs to be changed. we're talking about some 530 bucks. 52% enrollees in tax credits lowering refund by average of 17%. it is real money for people. isn't this really a favor to democrats here, fred? as you know, there were people in congress calling for oh,

just today we got our hands on ceo of intuit brad smith his letter to the irs commissioner, john koskinenpardon me saying that wrong, he is adamant there needs to be some kind of public/private task force to go after this thing. good idea? >> i think so. i think, you know this is a big problem in america today. many americans are facing identity theft in general. and specifically with your tax return as well. you know, he published this letter to basically put the outcry out there that we're experiencing these issues. i think the irs should join forces with the industry and come up with some solutions. part of the problem is, system that the irs have, kind of outdated and they're not really fit to fight this fraudulent tax returns. >> so all these thieves need really is your social security number, and your name. don't need your address. don't need any details how much money you're making, what your w2 looked like. you make all of that up. and what they do they steal your refund. they steal your refund and take tax credits that is in your name. with are is the irs on this? why aren't they

i will be less kind to the irs commissioner, john koskinen than steve was. mean he is saying that like they're doing fewer audits because they're focusing on worst offenders more but why would audits drop consistently across all categories? i don't know if it is too far to compare this to, how new york police department, bill de blasio doing a work stoppage, irs is unhappy with capitol hill. unhappy republican congress is holding funding in check. i don't know if they do less will cost federal government in some ways going after serious offenders is useful. gerri: that's right. steve, one of the details getting lost in the shuffle something like 5% of obamacare enrollees will have to stroke a check to the irs. 52%. it will work the opposite way. they expect to get money. they have to pay money. what went wrong? >> by the way, i want to go on the record gerri. i'm not defending i say one little nice thing -- gerri: sounded to me, my friend. i just report, you decide. >> you are right. i was looking at the numbers. a lot of people will send 500 more to the is.

during another heated hearing, irs chief john koskinen getting grilled on everything from the targetingandal to the irs rehiring tax cheats to work there. >> between 2010,w@'g,0kj!b[1pktnhg/+@ égúÑ@)nk! 3)é uaÑ%e,vcqÇ u+k @&c @&c@ and september 2013, the irs rehired 7,000 employees. a great jobs program. and we are always delighted when people are employed. but the question as to why over 800 of those 7,000 rehired irs employees were rehired with prior substantial employment issues. the. >> the bulk of those employees are temporaries or seasons who are hired for four to six, to eight months a year, depending on the time. >> and senator rob portman joins us. good evening, sir. >> good evening, greta. >>en i should add that commissioner koskinen apologized to this vet. however, didn't return the $149,000. i think that's a ridiculous apology. i would not accept that what is going on with the irs? >> first of all outrageous and to andrew clyde, thank you for coming up to the hill and testifying we need to change the law, one, there needs to be some evidence of criminal wrongdoing. here is a

that is after irs commissioner john koskinen repeatedly told congress those emails could never be recoverede chair jason chaffetz joins us. good evening mr. chairman, nice to see you. >> thanks, greta. >> what's going on? >> pretty stunning to learn that after all this time, all these excuses, you know, we have the emails now the tapes have been destroyed. they have been erased. and then you come to find out that the inspector general starts to look at it and in 15 days' time start to finish they will find the tapes when they talk to the it people and say what about these tapes they say well, nobody ever asked us for the tapes. we have had subpoenas. we have had letters. we have had confirmation from the irs commissioner on multiple occasions. and they have been sitting there all along. >> you say they. but this really is the commissioner he has testified i assume under oath at least if he is not under oath he knows the responsibility. acted so horrified that anyone would challenge him on this. but he frankly either didn't do his job or he is hiding something. now, didn't do his job is prob

john koskinen squaring off with lawmakers. >> it's awfully hard to go to the hard-working american taxpayers and ask them to comply with the tax laws when you have many employees in your own organization that don't comply. >> we have already adopted policies to address the problem. every expenditure of $50,000 or more for training or conferences has to be signed off personally by me. >> how do you think that the american people will feel about just your coming here and asking for more money. >> we are not asking for more money over history, we are asking for money back that's been taken away. >> senator what do you think? >> well, look, you know, their ask this year is 18.1% increase in funding. the irs. that's their request. and which i think the american people find outrageous. it's an offense to the american taxpayer, given the fact that the irs is also now saying publicly, that phone calls aren't going to get returned. they are not going to be able to offer the level of assistance that the american taxpayers should expect when it comes to filing their tax returns. and so the fact that th

a new hearing on capitol hill revealing john koskinen was not being honest when he said the hard drivelois lerner was destroyed. investigators testifying they have uncovered 32,000 be dealts linked to allegations, possible criminal activity. last-minute maneuvers on capitol hill to prevent the government from partially shutting down at midnight tonight. the senate passed a bill to keep the department of homeland security open through september as house republicans are reportedly looking at a stop gap three weeks spending bill. those are the headlines in case you missed it. stuart: thank you very much. now to that story, like it or not pretty much everybody is talking about. it is and $80 address. what color is it? black and blue white and gold? we ask you on facebook what color is using the address have in them. lori says white and gold. i don't understand the importance of this but i would love to understand the visual phenomenon as to why we see things differently. we do see things differently. john at this. white and gold. i saw it on tv earlier and was blue and black. what is going

martha: did john koskinen lie to congress? >> reporter: we expect it won't be long before koskinen is back to testify. after these revelations came to light in a late-night hearing. republicans believe they have been misled by the irs. suspicions grew about whether somebody in the agency may have been trying to keep these backup tapes from ever seeing the light of day. >> we send a subpoena, we send letters, we have hearings. we hear excuse s from the irs they can't have them, they are recycled, they are destroyed. you find them in two weeks and thenwhen you go talk to the it people who are in charge of them they told you they were never asked for them? is that correct? >> that's correct. >> reporter: the democrats on the committee have their suspicions the republicans are on a fishing expedition. >> originally there were reports there were 80,000 new lois lerner emails. but now you are saying the number is closer to 32,000. so can you explain how the number went from 80,000 to 32,000? >> it went from 80,000 to 32,000 because

it was clear from john koskinen, those emails we couldn't give to you were just lost, they were recycledoyed and damaged. how did they find hem? >> the commissioner said they went to great lengths and extraordinary efforts to find these. the way they found these emails is they went to the backup tapes. but the irs didn't go to the backup tapes. the inspector general seized the backup tapes in june of 2014. they reported they found 30,000 of lois lerner's emails. now it's about 80,000. a lot of those will be duplicates. we are see figuring 16,000 original email from lois lerner. what you have to do is look at a time line of this scandal. the whole irs targeting began in february of 2010. before the election. it was meant to silence critics of the president. it was meant to shut down donations to some of these outside groups. the missing emails blanket that from january 2009 to april 2011 when the plot was being hatched and implemented. 20 days after congressman jim jordan started asking questions that's when lois lerner's disk drive crashed. as i'm looking through the time line i smell a

john koskinen. the single will be introduced into the record, please limit your testimony to five minute to thank you. >> chairman ranking member, members of the committee, thank you for the opportunity to discuss the government accountability offices high risk as it obtains to irs operations. i am delighted to note that business systems modernization was removed from the list in 2013 after being on it since 1995. its removal came about because of the dances that the irs has made over many years in addressing weaknesses and information technology and financial management capabilities. turning now to tax enforcement we have identified this because of the size and the difficulty over time in narrowing the gap. the most recent study of this lease in 2012 found that it was $385 billion for 2006. the error as is preparing a new audit that will be done between 2000 and 2010 we expect this report to be released in the first quarter of 2016. one of the key findings from the ongoing research of the tax gap h

. >> john does koskinen has been through-to-this committee several times. that conversation with jim jordan several times. clearly he is tired of it. >> i'm tired of the no consequence i think the american people are i'm taking the last word on that. panel, thank you. three muslim students want a dental student executed near the university of north carolina. was it a hate crime or somethththththth >>> developing news, hate crime or dispute. the victim, a woman husband and sister all students and all muslims. police say cray hicks of chapel hill murdered couple and sister outside of complex. parking dispute led to the execution. victims' relatives say this was a hate crime. >> we appreciate your concerns and outpouring of love and support from our neighbors, student community and community at large. we ask that the authorities investigate these senseless and heinous murders as a hate crime. >> but the suspect's wife insisting her husband was not motivated by religious bias. joining us our legal panel former prosecutor katie phang and ted williams. you know t

. >> john does koskinen has been through-to-this committee several times.hat conversation with jim jordan several times. clearly he is tired of it. >> i'm tired of the no consequence i think the american people are i'm taking the last word on that. panel, thank you. three muslim students want a dental student executed near the university of north carolina. was it a hate crime or something else. our legal panel iets here next. so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today. (woman) caring for someone with alzheimer's means i am a lot of things. i am his guardian. i am his voice. so i asked about adding once-daily namenda xr® to his current treatment for moderate to severe alzheimer's. it works differently. when added to another alzheimer's treatment, like aricept® it may improve overall function... and cognition. and m

found thousands of e-mails linked to the agency's tea party scandal months after commissioner john koskinen says they were completely destroyed and lost forever. we're live in d.c. with this story. >> reporter: did not take the treasury department's inspector very long. all this did was go to the backup facility and pull out backup tapes. it appears they found 32,000 e-mails involving lois lerner. she is the woman at the very center of this targeting scandal. e-mails from lerner could tell investigators more about who, if anyone, actually ordered the targeting of conservative groups that were applying for tax exempt status. congress requested the e-mails from the agency but over the summer officials told lawmakers most of them had been lost when lerner's computer crashed. >> the actual hard drive after it was determined that it was dysfunctional and with experts no e-mails could be retrieved was recycled and destroyed in the normal process. >> now we're learning the i.r.s. never asked technicians to look for the tapes. and when the independent investigators from the treasury department star