I havent filed taxes in 12 years and I mostly received cash, when I did receive check I'd cash at the persons bank. I dont have records of people or payments and I dont have a checking account. How do I file federal and state income tax and cant figure income? I lost my home and everything I owned during the recession. Does the IRS have a way to figure taxes by taking an average based on the type of business you are in and is there a way to compromise a settlement with them and make payments on the compromised settlement?

I havent filed taxes in 12 years and I mostly received cash, when I did receive check I'd cash at the persons bank. I dont have records of people or payments and I dont have a checking account. How do I file federal and state income tax and cant figure income?====> Unreported income is huge deal to the IRS. The agency recently estimated that the U.S. loses hundreds of billions per year in taxes due to unreported income.in general, you need to keep track of those payments and tips whether or not you're issued a W-2 or 1099.Anyway,

you still must report all income from any source and any country unless it is explicitly exempt under the U.S. tax code. If the IRS files tax returns for you, the service is attempting to close an open file. This action is part of The Substitute for Return Program.
If the IRS files a return on your behalf, It is highly unlikely that you would ever want the IRS to file a return for you. If the IRS prepares a return, the statute of limitations, and a lot of other options, may not be available. If you allow the IRS to file your return, you may find yourself in messy situations where you don't know the rules. Even if you owe more money than the IRS says, so. it's still a good idea to file your own taxes. .
I guess you need to contact the IRS/your state revenue Dept agent for help;

I lost my home and everything I owned during the recession. Does the IRS have a way to figure taxes by taking an average based on the type of business you are in and is there a way to compromise a settlement with them and make payments on the compromised settlement?=>I think so. An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability, or doing so creates a financial hardship. We consider your unique set of facts and circumstances:
Ability to pay;Income;Expenses; and Asset equity.