Peter F. & Maureen L. Speltz - Page 5

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          Mrs. Speltz executed three documents in 2000, an employment                 
          contract, a salary redirection document, and a client data sheet.           
               The employment contract described Mr. Speltz’s job duties.             
          Mrs. Speltz and Mr. Speltz signed the contract.  Mr. Speltz’s               
          duties were described as childcare, lawn care, chopping firewood,           
          and repairing toys and sundry items.  Mr. Speltz was also                   
          required to work an “average” of 12.5 hours weekly in return for            
          a medical reimbursement benefit limited to $6,500 per year.                 
          Medical benefits, according to the contract, included                       
          deductibles, insurance premiums, and medical costs not covered by           
               The Employee Salary Redirection document provided that $542            
          per month would be directed to a flexible spending account on Mr.           
          Speltz’s behalf to pay for Mr. Speltz’s insured and uninsured               
          healthcare costs.  Mr. Speltz signed the employee salary                    
          redirection document as an “employee” and Mrs. Speltz as his                
               In addition, Mrs. Speltz signed a client data sheet                    
          requiring Mr. Speltz to work a “minimum” of 12.5 hours a week and           
          a “minimum” of 7 months a year.  The client data sheet also                 
          stated that Mr. Speltz’s medical reimbursement was limited to               
          $6,500 per year.                                                            
               Mrs. Speltz relied upon an Internal Revenue Service                    
          Coordinated Issue Paper, entitled “Health Insurance Deductibility           

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Last modified: May 25, 2011