Update:
I finally got this resolved, but it took 4 years, hundreds of hours on the phone and help from TAS for over a year. Seems the IRS lost the money that was stolen - over $8000. Hard core trace failed and they had to go to account restoration. I never got refunded for the interest and penalties that they charged me for deducting it from my taxes. Nor did I get compensated for all the time I spent trying to get help from the IRS. I will never be able to file my taxes without a huge amount of anxiety. I have lost several thousand dollars and my trust of the IRS and the useless staff. TAS was very helpful but they had a lot of trouble getting cooperation from the IRS.
