IRS audits don't necessarily have to be a horribly taxing experience.

If your pulse races at the thought of an IRS tax audit, you aren't alone. Every year, more than a million taxpayers react to letters from the Internal Revenue Service with fear and trepidation. If you understand the audit process and your rights as a taxpayer, an audit does not have to be an unnerving and costly experience.

The IRS usually will notify you by mall if your tax return is selected to be audited. There are three types of audits: correspondence, office and field audits.

The correspondence audit is conducted through the mail and is typically the simplest type of inquiry to endure. With this type of audit, the IRS generally asks you to send them documents supporting or verifying certain items on your return. If a professional preparer completed your tax return, you should contact this person immediately and request that he or she respond to the IRS. In any case, be sure either you or the preparer responds by the IRS deadline.

The office audit, the most common type of audit, is held at the IRS office with a tax auditor. The IRS will ask you to meet with its representative at a specific time and place. If the appointment is inconvenient, you have the right to reschedule at a time that is mutually convenient for you and the IRS. In the audit notification letter, the IRS will specify the areas in question and ask you to present supporting documentation.

The more formidable field audit usually is reserved for a wealthy taxpayer with a complex return that shows business or professional income. If you're selected for a field audit, the IRS will send a tax auditor to meet with you at your place of business or your home. Again, you have the fight to reschedule the audit at a mutually convenient time that does not interfere with the normal operations of your business. The field audit involves an extensive examination of your entire return and the supporting documentation.

You do not have to attend an audit by yourself. In fact, you don't have to meet with the IRS at all, unless an administrative summons requesting your presence is issued. Instead, you can choose to have a CPA - or another tax professional qualified to practice before the IRS - represent you.

When determining whether you should meet with the IRS without a tax preparer, consider what kinds of deductions are being scrutinized and how much is at stake. Also determine how comfortable you feel defending yourself. If you think your nerves might get the best of you, send a qualified representative who can present your case more professionally.

Carefully collect and organize the documents pertaining to the items in question. To limit your exposure, bring only those records that are needed to support the items being examined. Although office audits generally don't go beyond the items indicated on the audit notification letter, the IRS isn't precluded from looking into other areas on your return.

If the IRS decides to delve into new areas, the agent will most likely schedule another meeting so you can provide additional information. This will give you time to prepare. Also keep in mind that, during the audit process, you may claim additional deductions not previously claimed on your return.

Be sure you are on time for your office audit. Be pleasant, but don't let your guard down. Listen carefully to the auditor's questions, and consider your answers before making them.

Skilled IRS auditors can ask probing questions in the hope of identifying other problem areas on your tax return. When responding to the auditor's questions, do not elaborate or offer unnecessary explanations. Finally, be sure to provide requested documents in an organized and businesslike manner. Sloppy records give the IRS the impression that errors may have been made on your tax return.

So that you know what can and can't be expected of you during the audit process, be sure to read IRS Publication 1, "Your Rights as a Taxpayer."

Poteshman, a CPA and CFE, is president of Poteshman Consulting International & Co. a West Los Angeles based business consulting firm