Independent TD Shane Ross has said fellow independent Mick Wallace will have to consider his position in the Dáil "in the next 24 hours".
Deputy Wallace stepped down as a member of the Dail's technical group earlier today, after he was asked to do so by the other members of the group following revelations that he had deliberately evaded VAT payments.
Technical group whip Catherine Murphy said he had made it clear to Deputy Wallace that his tax affairs were a major concern.
Deputy Ross confirmed that he and other members of the technical group felt that Mick Wallace was no longer welcome among them.
However, he said the question of Deputy Wallace's Dáil seat was another matter.
"It's a matter he's going to have to look at in the next 24 hours and before he makes his statement," he said.
"Very few members of the Dáil feel that it's in their power to remove him. We can't remove him (but) we have condemned what he did. We have said that he should leave our group and he has agreed to do so."