WASHINGTON -- Clearfield, Utah, officials are trying to negotiate a settlement with some of the participants of the $6.8 million Heather Estates black-box bond deal that was sold for the city's housing authority five years ago and declared taxable by the Internal Revenue Service in June.

"We're talking about the idea of a possible settlement with some of the participants," said Harold Stephens, a lawyer representing the city in its lawsuit against the parties to the deal and its talks with the IRS.

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