IRS SIGNS CONTRACT WITH BASIS100 FOR AUTOMATED VALUATION MODEL PASS.

Basis100 Inc. (BAS:TSE), an e- commerce technology solutions provider for the financial services industry, has announced that the IRS has adopted Basis100's PASS product for assistance in determining an individual's equity in their real property. The PASS product will be used primarily when a taxpayer is requesting an "Offer in Compromise" for outstanding tax balances.

While the "Offer in Compromise" program is not a new program, this process will be much faster and more efficient for both the IRS and the individuals involved. Prior to adopting PASS as its home valuator, the taxpayer was often burdened with having to seek out an independent appraisal. This process would normally take several days, as compared to 5 seconds for the PASS report.

Basis100 has been providing valuation technology to the IRS since March of 2000 in a pilot program. The IRS identified measurable time savings by utilizing AVM technology and determined that automated valuations could replace traditional appraisals in most cases. The IRS subsequently requested competitive proposals from companies to provide the technology on an ongoing contractual basis.

"Our strategy is to provide technology solutions that can scale to just about any application," said Joseph Murin, COO, Basis100. "The IRS contract is evidence of this and more importantly, we now have a large government body outwardly validating automated home valuations, which will go a long way towards influencing overall industry adoption of AVMs."

The IRS will receive an accurate valuation from the Basis100 web-centric valuation solutions which include a property's estimated highest and lowest reasonable value, the two most recent sale dates and prices, the last assessed value on the home and comparable sales information for three additional neighborhood properties. Provided the valuation is deemed acceptable by the IRS review, a traditional appraisal will not be necessary and the IRS can continue with the processing of the Offer in Compromise application.

This is a one-year contract with four one-year option periods to be exercised at the discretion of the IRS.