WASHINGTON — The Internal Revenue Service has opened an audit of $360.7 million of bonds issued in 2009 by Vernon, Calif., which has been roiled by political scandals and could be disincorporated pending the outcome of state legislation.

A material event notice posted by the city Tuesday on the Municipal Securities Rulemaking Board's EMMA system, said the IRS will examine Vernon's 2009 electric system revenue bonds.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

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