In an appearance on CNN's "State of the Union," Issa said officials should have negotiated for a lower room rate for 2,700 IRS managers attending the conference.
"They didn't negotiate, they didn't bid it. And this was 2,700 folks. So they could have gotten a considerable reduction. Instead what they said is we'll pay full boat, but we want some perks. So they ended up with free drinks, they ended up with tickets to games, basically kickbacks," he said.
The conference in Anaheim is expected to be outlined in a report Tuesday by the Treasury Inspector General for Tax Administration.
The report found that the IRS spent more than $50 million on 225 employee conferences in a two-year period, CNN reported.