Don't Panic, your passport wont be lost.
I would suggest you to keep calling them on the number in this page and read this link https://www.irs.gov/individuals/understanding-[product key removed]e
The notice you would receive will have the specific details of rejection.
you can apply again and this time use option 2 instead of sending in the Passport.
Option 2
Apply for an ITIN in-person using the services of an IRS-authorized Certifying Acceptance Agent. This will prevent you from having to mail your proof of identity and foreign status documents.
