What if your tax return becomes one of these statistics? First, says IRS spokesperson Anthony Burke, “Don’t panic. Look at your return and figure out what happened.” Burke notes that what most people call an audit is an “examination” in IRS-speak. “We never audit people. We examine tax returns,” he says.

Some examinations are handled entirely by mail or through a combination of mail and telephone calls. Others may take place in your home, your business, an IRS office, or the office of your attorney or accountant.

Your first notice of a mail (also known as a correspondence) audit is likely to be either a request for more information or a letter stating that the IRS is proposing changes to your return. The audit will generally address one or two specific issues, and that’s all you’ll likely need to deal with. You can respond by mail or request a personal interview. If the IRS proposes changes to your return, you have the option to accept the changes and pay whatever additional tax (if any—it’s possible you could get a refund) that results, or you can disagree and offer evidence to support your position.

The notice for an in-person examination will tell you the time and place of the examination, along with what documents you need to have available. If the time is not convenient for you, simply call the IRS and reschedule. The IRS will make every effort to work with you on this issue, says Rex D. Alves, CPA, a former IRS agent and now a consulting accountant with Lewis & Spagnol CPA, LLC, in Maitland, Florida. “They want you relaxed,” he says, adding that in-person interviews are normally conducted where the books and records are. If you have a business, expect some disruption during this process.

Whether the examination is by mail or in person, immediately advise your tax professional when you receive a notice and let him deal with the IRS, says Alves. “When you go to an IRS office, it’s their ballpark, their rules. Tax practice is driven by procedure. If you don’t know the procedure, you’re groping around in the dark. Even when the agent comes to your house or your business, it’s still their ballpark [because you have to operate by their rules].”

Your tax professional should carefully review the items on the appointment letter and checklist provided by the IRS and you should furnish him with whatever documentation is requested. If you have kept good records and can support every item on your return, the examination should be a straightforward process. If you have taken deductions you cannot prove, they may be disallowed and, if so, you could be assessed additional tax and possibly interest and penalties. Tax professionals who are experienced in dealing with the IRS are usually familiar with the agents and will consider the strengths, weaknesses, and reputation of the auditor when preparing for the examination.

Throughout the examination process, you can act on your own behalf or have someone accompany you or represent you. Alves recommends that you send your tax professional and don’t personally attend the audit meeting. It’s easy to get nervous and talk too much—and that could cost you money. “As an agent, I got some good adjustments just by letting people talk,” Avles recalls. “They told me things they probably shouldn’t.”

Remember that the first step in preparing for an IRS examination is taken long before the notice is issued: Keep good records from the start. If you can document everything that you claim, an audit should be little more than an inconvenience that probably won’t even produce good cocktail party stories. If you can’t, have a candid conversation with your tax professional to determine the best strategy—and be prepared to pay.

Most important is that you take prompt action when you receive any kind of IRS notice. “It never does you any good to put that letter on the bottom of a pile of stuff and just pretend it never happened,” says Burke.

Jacquelyn Lynn is the author of The Entrepreneur’s Almanac (Entrepreneur Press).