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

Exercise 8

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