Acting Commissioner Danny Werfel says in his prepared remarks that it's a challenging time for the IRS.
The IRS has come under heavy criticism for expensive employee conferences and the targeting of conservative political groups that had applied for tax-exempt status.
A new report from the agency's watchdog says the IRS spent nearly $50 million on 225 employee conferences from 2010 through 2012.
Werfel is testifying before the House Oversight and Government Reform Committee.
The committee chairman, GOP Rep. Darrell Issa (EYE'-suh) of California, says the conduct of IRS workers is unfairly making other federal employees look bad.
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