The situation in New Orleans seemed to take a turn for the worse on Tuesday as a crucial levee gave way resulting in dangerous flooding, the New York Times reported. Martial law was declared in some of the hardest hit parishes, as Mayor Ray Nagin and other local officials regrouped in Baton Rouge. Gov. Kathleen Blanco asked all non-emergency workers to evacuate the city. Local businesses were threatened by rising flood waters, as well as looting. Instances of theft were reported by both the Associated Press and the local newspaper, the Times-Picayune.

The Internal Revenue Service offered a small bit of relief this afternoon when it announced extended tax deadlines for businesses and individuals in the affected areas.

Does your company do business in New Orleans or the surrounding area? If so, what has your experience been? How are you coping?