Villarreal v. United States, 2:11-cv-01594

This is a District of Nevada case where SAT asked IRS to obtain bank records under the US-Mexico TIEA.
Petitioner Villarreal is alleged to have used Immobiliaria Puertas del Norte and Bull Denim with Rambas Marketing to misclaim VAT refunds and evade taxes.
IRS issued a summons to Bank of America seeking the relevant account information.
Villarreal petitioned to quash the IRS summons; the court granted summary judgment enforcing the summons.
Villarreal moved for a stay pending appeal; the United States opposed and briefing followed.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Likelihood of success on the merits	Villarreal argues he will prevail on merits.	United States asserts prior Powell-based analysis supports enforcement.	No strong likelihood of success; enforcement upheld.
Irreparable harm from enforcement	Villarreal contends irreparable harm if documents are disclosed.	United States argues harm is not irreparable and may be remedied post-appeal.	Irreparable harm not shown; stay denied on this basis.
Impact on public interest and comity	Villarreal claims comity and treaty concerns may favor staying enforcement.	US asserts treaty cooperation with SAT and comity support enforcement.	Court found factors three and four insubstantial given failure on first two factors.

Nken v. Holder, 556 U.S. 418 (2009) (traditional stay factors govern preliminary relief)
Hilton v. Braunskill, 481 U.S. 770 (1987) (standard for stay analysis)
United States v. Kersting, 891 F.2d 1407 (9th Cir. 1989) (reversal standard for enforcement decisions)
United States v. Stuart, 489 U.S. 353 (1989) (good faith requirement for IRS summons)
Powell v. United States, 379 U.S. 48 (1964) (Powell test for IRS summons validity)
Lidas, Inc. v. United States, 238 F.3d 1076 (9th Cir. 2001) (good faith of IRS when treaty partner requests aid)
Church of Scientology of Cal. v. United States, 506 U.S. 9 (1992) (partial remedy can cure mootness by returning/destroying materials)