WASHINGTON -- An unprecedented court challenge to the IRS' right to tax bondholers is scheduled to begin today in the U.S. Tax Court in Los Angeles.

The case is being brought by Harbor Bancorp, a bank based in Long Beach, Calif., and Edward and Elena Keith, residents of Pebble Beach, Calif., who are challenging the Internal Revenue Service's right to collect a total of $67,833 in back taxes on their interest earnings from Whitewater Garden and Ironwood black box bonds.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.