Retirement tax questions

Thank you very much for your detailed information.

Let me ask you I understand it's IRS but do IRS people that mindless to pay not only taxes but 10% penalties on the money I never received?

I understand I made a mistake to close the account with custodian but swear to God I did not know that they send me last known value as a taxable amount with code 1k.

So if I present my case they are that stupid and heartless to pay me taxes and penalty on never received money as well as I lost entire retirement savings..