TODAY

TODAY   |  June 26, 2013

New IRS embarrassment: employee credit abuse

After the IRS found itself at the center of scandal for targeting conservative groups and spending $50 million on fancy conferences, the latest report from the inspector general reveals that IRS employees have used agency credit cards to buy expensive wine, pornography, romance novels and diet pills.

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>>> lisa myers has more. good morning lisa.

>> good morning. first there was the improper targeting of conservative groups and then $15 million spent on fancy conferences. now some report that irs employees used agency credit cards to buy expensive wine for lunches and romance novels and diet pills . the latest report by the inspector general found that some irs employees misused their agency credit cards . two credit cards bought online pornography . the workers reported the card stolen and the government was reimbursed. another worker spent $2,600 on diet pills , romance novels , a smartphone and baby supplies. then there was $3,100 to rent a popcorn machine and buy prizes for an employee event and 28 bottles of wine for a luncheon of 41 international tax officials cost $140 per person, four times the federal limit.

>> the irs is telling everyone else to follow the ruls or there will be severe penalties and yet employees at the irs didn't follow the rules and weren't disciplined as they should have been.

>> reporter: irs acting commissioner danny werfel is following up on several inappropriate reactions revealed in the report but 99.75% of purchases followed the rules. today congress will go after another alleged one showing how a tiny firm racked almost a half billion dollars worth of contract in a year by falsely claiming to be owned by a disabled vet. natalie.

>>> lisa myers in washington, thank