Tax Amnesty, Enforcement, and Deficit Reduction Act of 1986

Tax Amnesty, Enforcement, and Deficit Reduction Act of 1986 - Provides for a one-time tax 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 delinquent amount, pays the amount of such interest or delinquency. Permits installment payments in certain cases.

Defines the amnesty period as the six-month period beginning on the first June 30 after the date of the enactment of this Act.

Disallows such amnesty where: (1) any penalty (or addition to tax) had been assessed before the first day of the amnesty period; (2) there was fraud in seeking amnesty; or (3) a criminal investigation is pending.

Provides that the amnesty provisions apply only to underpayments of Federal tax for taxable periods ending before January 1, 1985.

Authorizes appropriations to inform the general public about the operation of the amnesty provisions.

Requires the Secretary of the Treasury to submit to the Congress not later than six months after enactment of this Act a plan for increasing Internal Revenue Service enforcement personnel by 2,500 additional agents on an estimate of revenues needed to implement such increase.

Requires that any and all revenues raised through the tax amnesty authorized by this Act shall be devoted exclusively to a reduction in the budget deficit for the year in which those revenues are collected.