They claim I have been claimed $70,000 and to avoid a tax fee I should send $500 their processing team will have UPS send it to me by 10:00 a.m. tomorrow morning.???????scam?

Yes, a scam.  If you've "won" anything, you never have to pay fees/taxes/money in order to receive your "winnings".

Prize Offers: You Don’t Have to Pay to Play!
http://www.ftc.gov/bcp/edu/pubs/consumer/telemarketing/tel17.shtm
http://www.consumer.ftc.gov/scam-alerts