Not surprising that the IRS would sever ties with an organization that helps clients defraud the government out of tax revenue:

The Internal Revenue Service said it would no longer include ACORN in its volunteer tax assistance program. The program offered free tax advice to about 3 million low- and moderate-income tax filers this spring. ACORN provided help on about 25,000 returns, the IRS said.
ACORN, meanwhile, said it had already suspended its tax program, raising questions about who broke up with whom.

It sounds like they’re admitting they have a problem and yet, they’re suing the makers of the video and Andrew Breitbart who posted the videos on his website. Evidently, it’s against the law to film someone without their consent and they have the right to sue if it happens:

The complaint: “The video and audio footage was taken without the knowledge of Williams and/or Thompson and in violation of Maryland’s Courts and Judicial Proceedings Code §§ 10-402(a) and 10-410, which requires two party consent to all electronic surveillance. Violation of the law is a felony, and entitles parties whose rights were violated to sue.”

Even though the law seems to be on their side, they were breaking the law in the video, I don’t think a jury is going to be too sympathetic.
Even Barney Frank is distancing himself from the group:

“The fact that people who were improperly registered to vote did not actually cast ballots in no way excuses the organization’s failure to exercise better control in this way,” he said. “Further, the motivation of those who went to ACORN offices and initiated the discussions involving prostitution are wholly irrelevant to the fact that ACORN’s employees’ actions were outrageous and further indication of an organization that is at best poorly run in many regards. The defense against sting operations is not to ban them, but to behave properly so that they do not reveal as they did in this case clear evidence of gross impropriety.”

But Reid doesn’t have to the time for hearings into what’s going on with an organization that’s been accused of voter fraud and caught on video helping clients set up a house for child prostitutes (but evidently, Pelosi does).
(via)