A government watchdog says lax oversight by the Internal Revenue Service allowed workers to use agency credit cards to buy wine for an expensive luncheon and, in one case, romance novels, diet pills and baby clothes.

One of the workers reported five agency credit cards lost or stolen.

A report Tuesday by the IRS inspector general found the vast majority of purchases by IRS employees legitimate. However, the report said the IRS has inadequate controls to stop inappropriate purchases.

The report said IRS credit cards paid for 28 bottles of wine at a 2010 luncheon for tax officials from other countries. There were 41 guests.

(AP)