Bernstein on IRS hearing: 'Political theater'

John Koskinen testifies during a hearing before the House Ways and Means Committee June 20, 2014 on Capitol Hill in Washington, DC.
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Capitol Hill was reminiscent of "political theater" on Friday, CNBC Contributor Jared Bernstein told "Closing Bell."

"It's a terrible distraction from what this country really needs to focus on regarding the IRS, and that is enabling this institution to do its job to collect the revenue it needs to collect," Bernstein said.

Lawmakers grilled IRS Commissioner John Koskinen on the Hill, examining how the agency could have possibly lost emails at the center of a scandal targeting conservative groups. Some House Republicans accused IRS Commissioner John Koskinen of lying. "I don't believe you," said Rep. Paul Ryan (R-WI).

IRS faces cover-up allegations
IRS faces cover-up allegations

"People don't want to see this kind of divisive kind of political theater where Paul Ryan is calling a public servant a liar," said Bernstein.

While, IRS Commissioner John Koskinen stood by the IRS statements that Lois Lerner's emails were lost and the hard drive was destroyed, CNBC Senior Contributor Larry Kudlow isn't buying it. Kudlow told CNBC he feels the IRS is misleading the committee.

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"The IRS has no credibility. This is real simple. The dog ate my homework, and oh wait, the dog ate the homework of the other seven people," Kudlow said Friday. "Unless you take a sledge hammer and destroy the computer, the hard drive, you can't lose emails."

—By CNBC's Crystal Lau and Laura Petti