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If you did not have retirement and interest income tell that to the IRS.
somehow the IRS has 1099's with either your spouse's or your SSN on them. are you sure that one of you didn't forget about the income they received. By the way with the IRS saying you had about $39,000 more income than reported you would have to owe a lot more in taxes for there to be a substantial; underpayment penalty.
i suggest you use
The Audit Defense service is provided by TaxResources, Inc., also called TaxAudit.com, in partnership with TurboTax. If you paid for Audit Defense and you received an IRS notice, call TaxResources, Inc. at 877-829-9695, or report your IRS notice on their web site at http://intuit.taxaudit.com/. Do not contact the IRS until you have spoken to TaxResources. They may contact the IRS on your behalf.
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