Yep, it is true.  I received the letter, got the check, bank cashed it, and taxes were $2950 federal, and $1,610 state. Filed police report, but money is gone. Investigation in process.

I have done some checking a Nancy Milford lives on 11 Peter S. S, Orillia, Ontario L3V 5A8 which is very close to 150 Elgin Street, Ottawa, Canada K1P-5K8 which is where you are to send moneygram or western union taxes.  There are also several Richard Morgans, who is addressed as claims agent, located in Toronto, Ontario.

THIS IS A SCAM!  This is a version of the money order/cashier's check scam.  The check will be difficult to verify so your bank may cash it, then you will send part of that money back to this company for "taxes."  In short order, you'll receive a notice from your bank that the original check was bogus.  You'll be out whatever the "taxes" were and you'll never see the rest of the money.  If it sounds too good to be true....

received a notice that I won a lottery for $250,000.00.  They sent a check for 4,975.00 stating that it was an advance for lottery winnings.  I called the number and was told to take the check to my bank and cash it.  They would then tell me what to do to pay the taxes. They could not tell me how they got my name or what the purpose of the lottery was. It looks like a scam to me.