Not using a loopback address can cause many problems, as you will likely discover on your own ;-p
The command you quote is used to specify the source interface, if I understand your question. You can only specify one.
If you don't specify the source interface, the router will use the interface closest to the destination, based on the routing table. If you don't specify an interface, then the source interface can change if there is a topology change. Your AAA server may not recognize the new address.
If you do specify a physical interface and that interface goes down, TACACS stops working.
If you use a loopback interface, the source address never changes, since the interface never goes down. This is considered a good practice.