i m wolf blitzer. i m wolf blitzer. you re in the situation room . captions by vitac www.vitac.com let s get right to the breaking news. a possible deal in the stalemate over extending the payroll tax cut for at least another two months, but potentially for the entire year. the year of 2012. we have all of our reporters standing by. let s go to our chief congressional correspondent, dana bash, he s up on capitol hill hill. for viewers just tuniing in, wht was just happened? what we expect is that the house republicans that they will not go for a short-term two-month extension of this payroll tax so that americans taxes will not go up on january 1st, we believe they are going to give in, back down on that and they will in fact go for it. this deal is being worked out, the final details of it as we speak. but our understanding, jessica yellin, kate bolduan and myself, basically what we re hearing is that there s going to be some kind of tweak for republicans to save fac