I have personal tax debts to both the state and the IRS that well exceed my ability to pay. However, I do have the ability to pay a little bit. So, I am preparing offers in compromise to both my state comptroller and the IRS.
I know how to calculate the total amount I can offer, which they refer to as my collection potential. What I don't know is how to allocate it between the state vs. federal offers. Should I just make it proportionate to the amount owed? (For example, if I owed $5k to state and $10k to federal and my total collection potential is $6k, I would offer $2k to state and $4k to federal.)
Also, is there any reason I might want to submit one OIC before the other, rather than just submitting them simultaneously?
