In 2008, the IRS flagged 8,000 employees who might not in compliance with tax laws. The IRS follow-up determined that about 2,800 were actually not in compliance -- but the Treasury Inspector General reportes that the IRS missed 133 additional employees with compliance issues.

After reviewing the 133 cases, the IRS discovered that 44% filed late returns were due refunds.  More than half the cases did not merit further review and were closed.