close out roth account

I CLOSED OUT MY ROTH ACCOUNT OCT 2022 AFTER LARGE LOSS. MY ORIGINAL INVESTMENT WAS AROUND $35,000 BEGINNING JAN 2021 IS WAS $3344.00 CLOSED OUT $5503.00  IT APPEARS IRS IS CHARGING MY AS  A GAIN ANT TAXING ME. IS THER SOMETHING WRONG???