Caller tells me that my s.s. Number is under investigation and I need to surrender my self to the local irs branch to resolve the matter.

Caller states that I received a law suit from IRS on my old address. When I asked him to write to me instead of calling as the quality of the  call was not good he just hung up. I don't know what pleasure people get by doing this to other people.

Scam...the caller called claiming to be from the IRS when I call the number back i get a busy tone!!!

Caller has a strong accent from a far east country but says his name is James Brown and then claims he's from the audit department of the IRS.  The authorities will arrest me if I don't return the call to resolve the matter within 24 hours.

There is a widespread IRS (or CRA) or "tax scam" being  practiced by scammers on both USA and Canadian residents.

USA tax payers should read this:
http://www.irs.gov/uac/Newsroom/Phone-Scams-C ... 5-Filing-Season

Canadian tax payers should read this:
http://www.cra-arc.gc.ca/nwsrm/lrts/2013/l131210-eng.html

Short answer:
The IRS never initiates a contact via phone.
They always send a snailmail first.

Educational post:
This scam is also described as scam #11, here:
http://phonehelp.2truth.com/facts.html

If you were contacted by an IRS impostor, you may file a report, after clicking on this link:
http://www.treasury.gov/tigta/contact_report_scam.shtml

UPDATES:
Recent news story:
http://www.wltx.com/story/money/2015/03/12/fa ... -scam/70202814/

Congressional hearing:
http://www.nbcnews.com/business/taxes/tax-imp ... hearing-n341906