This argument is rejected for the reasons stated above with respect to exclusive legislative jurisdiction. Defendants' motion to dismiss for lack of personal jurisdiction is denied.
IV. SUBJECT MATTER JURISDICTION
Defendants' motion to dismiss for lack of subject matter jurisdiction is premised on the purported invalidity of the Sixteenth Amendment to the United States Constitution. As defendants recognize, the validity of the Sixteenth Amendment has been upheld repeatedly. See, e.g., Lysiak v. Commissioner of Internal Revenue, 816 F.2d 311, 312 (7th Cir. 1987); United States v. Ferguson, 793 F.2d 828, 831 (7th Cir.), cert. denied, 479 U.S. 933, 107 S. Ct. 406, 93 L. Ed. 2d 358 (1986); United States v. Foster, 789 F.2d 457, 462-63 (7th Cir.), cert. denied, 479 U.S. 883, 107 S. Ct. 273, 93 L. Ed. 2d 249 (1986); United States v. Thomas, 788 F.2d 1250, 1253-54 (7th Cir.), cert. denied, 479 U.S. 853, 107 S. Ct. 187, 93 L. Ed. 2d 121 (1986). Defendants argue that these cases are not controlling because they were decided without the benefit of the research compiled in W. Benson & M. Beckman, The Law That Never Was (1985), and because they were decided fraudulently.
First, it simply is not true that The Law That Never Was was not presented to the Seventh Circuit. The Seventh Circuit noted that the information compiled in The Law That Never Was has been known since 1913, and the court found that it presented no grounds for invalidating the Sixteenth Amendment. Thomas, 788 F.2d at 1253. Defendants argue that the Seventh Circuit never faced the issue of fraud by public officials in the amendment's ratification process. Defendants' arguments of fraud are conclusory at best, but the Court finds it unnecessary to explore them in further detail or accept any evidence with respect to them. As the Seventh Circuit has stated, "the Sixteenth Amendment has been in existence for 73 years and has been applied by the Supreme Court in countless cases. While this alone is not sufficient to bar judicial inquiry, it is very persuasive on the question of validity." Foster, 789 F.2d at 462. This Court is not inclined to revisit the amendment's validity at this time in the absence of the most compelling reasons. Defendants' arguments concerning The Law That Never Was do not constitute such compelling reasons.
Defendants also make conclusory allegations that the Seventh Circuit cases concerning the Sixteenth Amendment were decided fraudulently. It is unclear exactly what defendants mean by this, although they make some reference to misconduct by the taxpayers' counsel in those cases. Defendants also request a hearing on this charge. Defendants have made no showing of fraud, nor have they made any showing that a hearing would provide grounds for determining that the Seventh Circuit cases were decided fraudulently. Defendants' motion to dismiss for lack of subject matter jurisdiction and request for a hearing are therefore denied.
Defendants' final motion to dismiss alleges that there is no valid federal tax assessment. In response, the government has produced certified copies of the commissioner's assessment. Defendants thus have no basis for arguing, as they do, that the assessment certificate is a "phantom." Defendants' motion to dismiss for lack of a valid assessment is denied.
Defendants' motions to dismiss for lack of exclusive legislative jurisdiction, lack of personal jurisdiction, lack of subject matter jurisdiction, and lack of valid assessment are denied. Defendants are to answer the complaint within twenty days of entry of this order. A discovery cut-off date is set for April 17, 1989.