Possibly. Taxpayers commonly owe both IRS and state taxes and do negotiate simultaneous settlements. Most states have tax compromise programs similar to the IRS program. Other states compromise with delinquent taxpayers as a matter of practice if not official policy. You should prorate the offers to the IRS and the state, paying each their proportionate share. Parity is important. Payment dates and other terms of the offer should also coincide, as should your financial disclosures. Finally, make certain each agency knows you owe the other and that settlement with each is conditional upon settlement with both.