True or false? The testimony of any person that your earnings are derived from federal privilege is enough evidence for a federal court to accept it as true, regardless of whether this testimony is correct.

This is the key right here. Courts operate on the basis of evidence. Most people are aware that a jury is supposed to disregard everything but the evidence put before it. The same is true in all cases involving the tax laws, and by extension it is true in the administration of the tax laws by the IRS as well.

Testimony about the nature of your earnings is the only evidence they have and it is all they need to assess the tax if the testimony says your earnings derive from federal privilege.