https://www.youtube.com/shorts/TmmI12d0g2M?feature=share

For those afraid to look at a video, I'll summarize.

It says that you can send a 1099 to a thief and the IRS will then allow your loss as a tax write off, you get a filling fee that could be as much as 1/3, and the IRS is unbound by somebody filing bankruptcy so they will go after the person.

Obviously if you don't know who stole your money this doesn't apply, it relates to those who've had somebody embezzle from their business or some similar theft.