Confirmed fraud attempt, claims to be from IRS tax audit department. This is a Pakistan or India based IRS scam. Do not fall for it. The IRS does not initiate any legal action via phone.
Read http://www.treasury.gov/tigta/press/press_tigta-2014-03.htm
As general background information, here are a few things you can do:
1) Report it to TIGTA under http://www.treasury.gov/tigta/contact_report_scam.shtml especially if you have become a victim (lost money, gave personal information etc.). You can also file a complaint with the Federal Trade Commission at ftc.gov/complaint (include “IRS Telephone Scam" in your complaint). This way you can help the government establish specific fraud patterns and support the efforts to track these "scambags" down.
2) Help kill their phone lines. The scammers use Voice over IP lines (e.g. magicJack (Ymax corporation)) to make it seem as if they are calling from the US. This is always against these companys' terms of use and can lead to immediate termination of their contract and blocking of their IP addresses for future attempts to register. However, most of the time only law enforcement can initiate the contact with the telecom company if you yourself are not a customer. Therefore, do a reverse look up of their telephone number (www.whitepages.com) to identify the Voice over IP provider (e.g. Ymax, Level 3 Communications, Bandwidth.com etc.). Then, if you cannot file a complaint yourself at the telecom company's website or over the phone (as is e.g. the case with Level 3 Communications), report the scam and the used telephone number to your state attorney general and/or to your local law enforcement agency (by the way: a good idea regardless) so they can get in touch with the company's legal compliance department.
3) Ultimately this is a case for the FBI legal attache in Islamabad or New Delhi. So if you are really annoyed: call or write to your representative in Congress. As these scams happen all over the country maybe this will trigger a reaction and provide US law enforcement agencies with the political backing and the resources they need to work in India and Pakistan together with local authorities (it can happen, read: http://www.ndtv.com/article/india/ex-call-cen ... mmission-320427). A US task force has already been set up in Jamaica to nab scammers there (see http://www.ice.gov/doclib/news/library/reports/cornerstone/cornerstone7-1.pdf). So if you want a SWAT team kicking in doors of call centers on the subcontinent (and who doesn't), take a little time to write and voice your anger. You can use the following template for your letter (more powerful!) or email:
Update:
Called back and he read a laundry list of charges against me. Then said I would be contacted and arrested. He then said to call back and ask for a Jenny Wheson. Same number but ext 010. His name was Mark Robinson. Mark must have been born overseas, cuz that is a heavy accent. He was quick to get off the phone with me. Complete scam folks. Don't be bullied. I googled the name Mark Robinson and the prefix 202-470 and a slew of scams popped up. Looks like they changed their scam from "grants" to intimidation.