Prosecutor West, an arrogant asshole if I ever heard of one, clearly ignoring the facts to put a notch on his belt said, “But publicity about it doesn’t help. It just ratchets up feelings in the agency.” He concluded with a settlement offer in which the government would keep half the money.

To hell with the feelings of the "agency"!
That prosecutor should be fired and jailed for the rest of his life. Actually he should be impaled on the courthouse lawn as a warning to other tin pot dictators.
As for the IRS, that unconstitutional agency should be shut down immediately. Let those worthless sleezeballs try earning a real living by proiducing something of value for a change.

And as it stands, there isn't even a law regarding the matter...simply anar it rare IRS regulation.

"Safe as money in tha bank" has taken on a whole new meaning.

Hello RMP,
He should sue them and get all of his money back plus a settlement for wrongful taking and mental anguish. The settlement should be taken from the overzealous IRS agent and any superiors involved.
Respectfully,
O.A.