When you are using possessives here are three examples. are theses any better?

1. Bill’s failure to keep proper records may land him in hot water with the IRS.
2. To keep from getting lost the best way to store Bill’s records is digitally.
3. Using flash drives to store his records Bill’s steering clear of the IRS.

In number 3, Bill's is a contraction of Bill is; it is not a possessive. Can you rewrite this sentences making IRS possesive?

For number 2 -- How about: Bill took his advisor's recommendation and stores his records digitally.