A third party entered into a €5.8 million loan for which the Petitioners assumed joint and several liability. As a result of entering into this transaction structure, known as CARDS, the Petitioners claimed a tax loss of $4.3 million. The U.S. Internal Revenue Service challenged the transaction on the basis that the transaction lacked economic substance and that the loss claimed was artificial. Mr. Chodorow was retained by the Internal Revenue Service to evaluate the impact of the transaction on the Petitioners’ economic position, and to assess the claimed business rationale for entering into the transaction. He concluded that the transaction was not economically rational absent the claimed tax benefits. The U.S. Tax Court found that the transaction lacked economic substance and that the claimed business purpose was not credible, noting in its opinion that “we find Mr. Chodorow’s report and related testimony persuasive.” The claimed tax loss arising from the transaction was therefore disallowed.