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

The United States has one of the most expansive taxation systems in the world. Generally speaking, our government will tax any income earned that has any connection to this country, either through the transaction or citizenship of the party. For example, a U.S. citizen is taxed on income anywhere in the world. A foreign citizen can generally be taxed on any transaction involving the United States. There may be, however, a "foreign tax credit" against which taxes paid to a foreign government are credited against taxes owed to the United States. You may be missing part of the equation, such as rental income, or other basis for taxation. Even if you do not owe federal taxes, I agree that you want to clear up the situation, or risk greater problems. I suggest that you consult a tax attorney for help with this matter. Do not try to deal with the IRS yourself. Dealing with any government agency is a journey in Wonderland, and anything that you say or write can be used against you. A good tax attorney may be able to reduce the taxes, and save you money, possibly even in excess of their fees.