IRS Warning: Prepare for Smaller Paychecks Beginning Jan. 1

As the lame-duck Congress fiddles over tax cuts (or increases), the IRS is counting down the days to new withholding tables. Brace yourself.

If lawmakers don't make a decision within 10 days -- an increasingly likely prospect -- the IRS says it will set 2011 withholding schedules based on the assumption that all Bush tax cuts will expire on Dec. 31.

The H&R Block Tax Institute estimates that will mean a couple with a household income of $80,000 will see their bimonthly paycheck shrink by $221.48 as higher withholding kicks in.

Upset yet?