McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 41

Billups, a physician and cash-method taxpayer, is new to the concept of tax planning and recently learned of the timing strategy.To implement the timing strategy, Billups plans to establish a new policy that allows all his clients to wait two years to pay their co-pays.Assume that Billups does not expect his marginal tax rates to change.What is wrong with his strategy?