"He said I owed $10,000, and if I didn't pay it over the phone" = The IRS does not operate in this manner
"he would send the local police to pick me up." = Nor do they call and threaten you will be "picked up" by the local authorities. That is a SCARE TACTIC used by scammers.
Read http://800notes.com/arts/I2neMkbUAAo/where-to-report-phone-crime to determine where you should report the extortion scam. Also read up on all the great information provided here http://800notes.com/arts/ to educate yourself.
NEVER give ANYONE your personal information, social security number/date of birth/address to verify it is you they have reached. They WILL use every piece of information you give to steal your identity from you.
I saw that # on my call block history come up several times, so I decided to call it this morning. Guy with very heavy India or Pakistani accent answered. He said " We have confirmed that you owe money to IRS as a result of a nation wide audit." I said " Well my call id does not show IRS, first you must prove to me that you are from IRS." He tap danced and said something about he is only doing his job to collect for IRS and that I along with many others owe the IRS. His accent was very heavy and difficult to understand.
I then said "I do thank you sir for doing your duty." I said "I now feel very confident that you do indeed represent the IRS, and that IRS really means India Ripoff Scam." Apparently this crook did not appreciate my comment. He didn't like the fact that I had called, I said I don't like the fact that you fill up my call id and call block. He said "Quit calling here and wasting my time!!" I said "You are a crook who is calling people non stop trying to rip them off with your fake IRS scam and many many will be calling you back until you change your number." You are a crook and thief so you time doesn't matter to me and you are an complete idiot claiming that I am wasting your time. You are a crook,the lowest of the low, all of your time is a Waste, your pathetic life is a waste and that is on you not me." Next thing I hear was a hang up. I could hear lots of background noise so he likely is in a big sweatshop all center. Next time they call I will let em listen to some Rush Limbaugh