MeF Letter

Person to Contact: Floyd Holland Address: 4050 Alpha Road

MS 4200 11^th Floor

City: Dallas, TX 75244

Telephone: 972-308-1529

Taxpayer Identification Number:

Tax Periods:

Form:

Dear _____________:

You have filed a paper tax return for the period ending ______________, which reflects year-end assets exceeding $50 million. As such, your corporation may be required to file electronically under Treasury Regulation Section 301.6011-5T. This regulation states that a corporation with assets equal to or exceeding $50 million and filing 250 or more returns is required to file its tax return electronically for tax years ending on or after December 31, 2005. Additionally, the regulation states that if a corporation that is required to file electronically fails to do so, the corporation is deemed to have failed to file its return. A copy of this regulation is attached.

If you feel you are not covered by this requirement, please provide your reason in writing within 10 days to the person named above at the address shown. If we agree with your explanation, you will receive an acknowledgement confirming this decision. Someone from the IRS may contact you regarding future tax filings.

Please be aware that should it be determined that you are required to file electronically, you may be considered not to have filed a return and may be subject to a Failure to File Penalty. Some elections made on the paper return may not be considered valid.

If you filed a paper return in error, we will provide you an opportunity to correct this by filing an electronic return. To ensure that this electronic return is considered timely when received, it is imperative that before filing you contact the person whose name and address appear above. Once we have accomplished the necessary steps to grant an administrative extension of the filing period, we will notify you that the electronic return can be filed. Additionally, you will be expected to electronically file for all future tax periods in which you meet the requirements of Treasury Regulation Section 301.6011-5T.

If you have any questions, please contact the person whose name and number appear above. For more information on electronic filing and guidance, please visit our internet site, www.irs.gov . Simply click on the “e-File” logo, and then click on “e-file for Large and Mid-size Corporations.”

Sincerely yours,

Darlene G. Forgy

Project Manager

Enclosure