IRS -Sent courtesy notice

So the IRS has been auditing me since last summer for the tax year ending 2009. They wanted to see my milage log. So everytime i'd send them something that they ask for they have these computer generated letters coming back telling me they are not allowing my deductions for milage because my milage log is not for the taxable year! What are they smoking! SO now they sent me a deficiency notice which is a letter telling me to pay up or take them to court.

Any ideas would greatly be appreciated. I have 90 days to take them to court but I just sent them a courtesty notice and a letter to advise them of the courtesy notice. I am not sure if I should just wait at this point or file papers to take them to court.

The letter they sent me is railroading me and it says that I will owe the money if i do not take them to court. I am not guilty so why do I have to take them to court. I also read 90% of their cases settle before going to court as they make a deal with you to settle so they dont have to clogg up the courts. Sounds like blackmail. I can't afford for them to just start garnishing my checks so Im not sure what to do.

Thanks in advance for the help

Julie.