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IRS-funded video surfaces of employees practicing dance moves

So you think you can dance, IRS employees?

So you think you can dance, IRS employees?

The Internal Revenue Service on Friday handed over to Congress yet another homemade video of its employees, the latest being a dance competition parody of workers polishing their moves.

Footage of the staged danced rehearsal is the latest of three total videos released by the IRS that have been flagged by oversight committees on Capitol Hill. Earlier this year, videos surfaced of IRS employees parodying the TV shows Star Trek and Gilligan's Island. The agency admitted in March that the two show parodies cost about $60,000 to make.

The agency tells NBC News that the most recent dance video cost about $1,600 and was meant to be shown at the end of the agency's 2010 training conference held in Anaheim, Calif. In the video, IRS employees are seen practicing a choreographed dance routine one-by-one while their colleagues are interviewed on camera.

"Their dream: To become the next great dance sensation," a narrator says over music as workers in the background practice their dance routine.

"And I thought doing the Star Trek video was humiliating," said one woman, whose name was redacted in the released video.

The IRS on Saturday acknowledged the third video, saying in a statement Saturday that it was "unacceptable and an inappropriate use of government funds."

The embattled agency is currently in the midst of an ongoing investigation after it was found to have improperly targeted Tea Party groups seeking tax-exempt status. Acting Commissioner Steven Miller subsequently stepped down last month, and after pleading the 5th Amendment during a House hearing, Director of Tax-Exempt Organizations Lois Lerner was placed on administrative leave.

This Thursday, the House Oversight and Government Reform Committee will be reviewing "the IRS spending culture and conference abuses"—the subject of a hearing and an upcoming report by a Treasury inspector general expected next week.