Federal Tax Delinquency Amnesty Act of 1987

Federal Tax Delinquency Amnesty Act of 1987 - Provides for a one-time amnesty from criminal and civil tax penalties for a taxpayer who: (1) files a written statement with specified information concerning any underpayment of tax; (2) pays the amount of such underpayment when filing the statement; and (3) within 30 days of notification, pays 50 percent of the amount of interest payable on any underpayment (and the amount of any tax delinquent amount). Permits installment payments in certain cases.

Defines the amnesty period as the six-month period beginning July 1, 1987, or beginning the first July 1 after the enactment of this Act. Applies such amnesty to all payments relating to tax years ending before January 1, 1986, or taxable events occurring before January 1, 1986.

Disallows such amnesty where: (1) the taxpayer was contacted before a statement was filed; (2) there was fraud in seeking amnesty; (3) a criminal investigation is pending; or (4) the income involved is illegal source income.

Authorizes appropriations to administer such amnesty program and to employ 3,000 additional Internal Revenue Service agents.

Increases criminal and civil tax penalties by 50 percent.