what action can I take to dispute IRS owed income tax, I have never worked in the U.S.

If you do not respnd, you will complicate your life greatly. Ignoring the IRS would be a huge mistake. It is hard to say why the IRS thinks you owe income tax, and may be due to an error - or not. However, unless you sort it out with them, they can (and normally will) file a Federal tax lien against your US real estate, and have the option of selling your house to collect what they think is owed, plus accruing interest and penalties.

If you respod to them and get to the bottom of the problem, you should be able to either resolve it or, if necessary, to pay the tax before matters get far worse.

I couldn't agree more with Margery. Tax Problems are not like fine wine, they don't get better with time.

Not responding to letters from the IRS may seem like the way to go since the IRS may not take any serious action for quite a long while. Nevertheless ignoring the IRS will most likely end up in IRS tax liens, and tax levies on any bank accounts or assets you have in the U.S.

Dennis Brager