Welcome to the forum, Sheila! Poor little thing! Thank goodness it ended up with you!
Now, don't take this the wrong way but you might never achieve what you want with this bird. Let me explain. IRNs (all psittaculas, actually) are considered aviary birds and not companion. This means that even when they are handfed and properly socialized to people and handled right, once they reach the age of sexual activity, they will become aloof and prefer to be with other birds than with people. They simply do not bond as deeply as companion parrots and, in order for them to retain some of the original bond created by the imprinting to humans, handfeeding and proper socialization, they need to be handled expertly, regularly and very often or they revert to what people call 'wild ways'. This bird was never handled or socialized so it has reverted to the so-called 'wild ways' a long time ago. Can it be brought back? Yes, it can. But it will take a looooong time, a lot of work and many, many hours interacting the right way. But even if it's successful, it will not act like a companion parrot because you can't go against nature.
Now, the first thing you need to do is to stop having any kind of expectation in terms of its behavior and just love it and enjoy what the bird is able to give you. This is mostly because parrots are individuals and they all react differently and in their own way to the same stimuli. The second thing you need to stop doing is toweling it and, MOST IMPORTANTLY!, stop forcing it to accept your touch. The towel and touching of its head when the bird obviously does not want it is called a 'flooding taming technique' and all flooding is a big no-no in the parrot world. It's something we used to do many years ago but we have learned since then that this is not conducive to a good long-term relationship with parrots. Basically, it ends up backfiring because you either break the bird's spirit or create a terrible despondency in the bird. I wouldn't have clipped its wings. For one thing, I don't believe in handicapping an animal but, for another, being able to fly means less stress both physical and emotional in a flying prey animal.
Let the bird come out of its cage and go back into it on its own. If you time its breakfast and dinner properly, it will go back on its own but, at the beginning, I would only allow it to come out two hours prior serving its dinner (for which I recommend a good quality budgie seed mix). Of course, for this to work, you can't free-feed protein food but, as this is not recommended for any parrot, it's a healthy thing to do for all of them. Now, I am sure that this will surprise you but the fruit pellets are, by far, the worst pellets there are -they are full of artificial stuff, made out of very low quality ingredients and
white sugar which is terribly unhealthy to parrots! I would suggest you do a bit more research about the natural diet of parrots and, most especially, of IRNs because they require very little protein and fat, and very high moisture and fiber so pellets don't quite fulfill their dietary needs (too dry, too much protein, too little fiber). I recommend you feed it a nice gloop with more than 50% veggies in it accompanied by a large portion of raw fruit and a leafy green for breakfast and, as I mentioned before, a good quality budgie seed mix for dinner. I would also give it a multivitamin/mineral supplement (I would get the powder kind you mix in its water for now as you can't guarantee he will eat enough of his soft food for now) daily for two or three weeks (you need to replenish all the deficiencies caused by the bad diet it's had).
If it were mine, this is what a normal day would be: uncover cage when the sky is beginning to get a bit or light in the horizon (5:30 am this time of the year), clean cage and feed gloop with produce. Turn overhead light in room about one hour after sunrise (about 7:30 to 8:00 am). Spend as many hours as I can in the same room he is, talking, whistling, etc but not staring at him or asking him for anything. In the evening, when the sun is halfway down to the horizon (about 5 pm), take food out of its cage and leave the door open. Again, spend these two hours interacting without touching it or staring at it. At around 7:00 pm, put his seed dinner in his cage and walk away but keep an eye on him (out of the corner of your eye) and, as soon as he goes back into its cage, close the door. Once he gets used to the routine, he will not mind this at all and, as he gets used to it and your presence, you can start training him to target which will help you with the step up and the physical interaction. BUT, he needs to learn that you are not going to trick him into anything he doesn't like first and this is going to take a longer time now because you are not starting from zero but a negative number because of the clipping, toweling and forcing him to accept your touch so, please, please, be patient and don't give up!