Well 1st of all i dont think the IRS gives people money they mainly investigate wether or not you lied on taxes. But that being said.... ITS A GAME! i hate to say it but(not knowing i would have been banned) i would have done the exact same thing with the shirt. Second of all, Blizzard has the ability to remove items the same way they do to give them, and a 3 day ban while they sorted his inventory out would have been plenty of punishment.... what people are forgetting while they jump up on their high horses here is that a) its a game, and b) blizzard sent it to them; they didnt hack the game.

The only reason blizzard is too narrowsighted to act on this matter in a logical way is they simply apply their TOS and EULA blindly these days. http://www.joystiq.com/2006/01/31/blizzard-vs-gaymers-are-other-minorities-next/
The sad truth is blizzard is no longer a gaming company, they are a corparation and they've obviously forgotten wow is just a game. After all, no one in real life would be hurt if karatechop and his guild could keep going minus martins fury and the achievements/loot earned.