CHICAGO -- Cleveland and five other Ohio cities have canceled plans to issue tax-exempt bonds to pay off pension fund liabilities in the wake of Internal Revenue Service concerns that forced Columbus to scrap its deal last week.

Finance officials in the cities said this week that they had been preparing or considering bond issues totaling about $126 million in anticipation of a successful tax-exempt bond deal in Columbus. Columbus planned to sell $27 million of bonds and use the proceeds to pay off its liability to a state pension fund.

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