1985 Tax Amnesty Act

1985 Tax Amnesty Act - 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 of the amount of interest payable on any tax deliquent amount, pays the amount of such interest or delinquency. Permits installment payments in certain cases.

Defines the amnesty period as the one-year period beginning on the date of the enactment of this Act. Applies such amnesty to all payments relating to taxable periods ending before January 1, 1985.

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

Requires the Secretary of the Treasury to establish a special account into which the taxes recovered under such amnesty program shall be deposited. Requires that amounts in such special account shall be used to retire outstanding obligations of the United States which are part of the public debt.