Aqua Services, Inc.
c/o David Freeman
Decatur, GA 30030-4317153

September 3, 2007

Internal Revenue Service
Cincinnati, OH 45999-0150

RE: Notice Number: CP215; Date: August 20, 2007; TIN: 12-3456789
Tax Form: CVL PEN; Tax Period: December 31, 2004

To whom it may concern:

With regard to the CP215 notice sent to Aqua Services, Inc., dated August 20, 2007, which requested a penalty payment of $4,000.00 for non-filing of a W-2 form for business fiscal year 2004, we respectfully disagree with your assessment of said penalty.

Aqua Services is an S-Corporation, as I am sure your records show. As such, we have no employees – only the officers of the corporation, none of whom draw a salary (“wages”).

Therefore in 2004, we had no employees. The 2004 quarterly federal wage reports for David Freeman were filed in error and are consequently incorrect for that year.

At this time I officially revoke all paperwork regarding wages or salary submitted for the business fiscal year 2004.

I believe this will rectify the “missing” W-2 form for which you wish to assess the aforementioned penalty.

Please remove all record of this penalty from the Aqua Services record/account.

Sincerely,

Patricia A. Freeman, CFO
Aqua Services