Fianna Fáil TD Mr Michael Collins has announced that he is tovoluntarily resign the party whip.
His decision follows Friday's revelations by the Revenue Commissioners that he was on a list of over 400 tax defaulters.
However, the Limerick West TD still intends to hold his Dáil seat.
In a statement, he said he was deeply embarrassed by the RevenueCommissioner's disclosure that he had made a settlment for a total of €130,602.
The Revenue's quarterly list of tax defaulters shows Mr Collins owed €32,000 in tax due as a result of an undeclaration of income tax and VAT as well as tax due on income in a bogus non-resident account owned by the TD.
The total figure includes €98,601 incurred in interest and penalities.
Mr Collins said he deeply regretted having the liability but that it predated his membership of the Oireachtas.
On Friday, the chairman of Fianna Fáil's Standards in Public Life Committee, Mr Seamus Kirk, said he would look at whether Mr Collins had broken party regulations.
Mr Kirk said that when the investigation is complete the committee will take "whatever action is deemed appropriate under the authority of the Fianna Fáil national executive".