The supporters' group delivered their verdict after Wallace became embroiled in a series of storms and negative headlines. Yesterday they launched a website that will allow punters to put their season ticket cash into a trust account before being given to the club if security over Ibrox and Murray Park is handed over.
Wallace has previously hit out at the plans, which have been backed by Dave King and nine-in-a-row legend Richard Gough. Wallace has been reported to Police Scotland over comments madeat Rangers' agm last year and has come under huge criticism from fans after it was revealed he could pocket a 100% bonus on top of his £325,000 salary.
And UoF spokesman Chris Graham said: "We are of the opinion that his position has become untenable.
"Of the stuff that has come out over the past few weeks, the bonus is only the latest thing.
"One of the things that particularly angered us was his attempt to shift the blame of the credit and debit card facilities on to the Union of Fans.
"We will reiterate it again that it had nothing to do with the season ticket boycott and we know it didn't.
"We asked him three weeks ago, 'Are you taking this 100%?' and he refused to answer the question. It's clear now that bonus is available to him. There has been a complete lack of transparency, a total lack of engagement.
"We've seen the survey from the club, it's an easy way of making it look as though you are engaging with people without doing anything difficult."
The levels of animosity between the fans and the boardroom have rocketed in recent weeks as the battle for control of Rangers has again intensified.
Thousands of fans are unlikely to renew season tickets in protest at the way the club is being run and Graham insists the board's time is up.
He said: "With the level of distrust there is at the moment, I don't think there is a future for the board as things stand.
"Graham Wallace and [David] Somers talked at the agm about building trust with people, but they have done nothing since then, we have gone backwards and things have got worse and worse.
"In that aspect alone, not least the other aspects, they have completely failed.
"Some fans will buy their season tickets, but there is a vast swathe out there who don't trust them at all."
A Rangers spokesman said: "I couldn't say how many tickets have been sold.
"We don't normally release figures until after the deadline for renewal and that isn't until May 16."