Someone I know said that he read that the project was creating a
replacement for TrueCrypt. Can anyone verify this as accurate or not? If
it is accurate, how far along is the work and where can I find more
information?
This is the first I've heard about it.
(So unless it's a random remark somebody made offhand about a project
they'd like to do someday, I'd guess it probably isn't true.)
If there is a reason to replace Truecrypt what would it be?
I presume "project" means TAILS, not Tor.
https://tails.boum.org/forum/truecrypt_alternative/
For the OP, there is a Tails-dev mailing list, to ask them about their
plans.
https://mailman.boum.org/listinfo/tails-dev/
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