Peoria & Pekin Union Railway Co. v. Dept. of Revenue
Case Date: 12/18/1998
Court: 3rd District Appellate
Docket No: 4-97-0786
No. 4--97--0786 December 18, 1998 IN THE APPELLATE COURT OF ILLINOIS THIRD DISTRICT A.D., 1998 __________________________________________________________________________ __
JUSTICE BRESLIN delivered the opinion of the court: On this appeal, the plaintiff, Peoria & Pekin Union Railway Company (railway), argues that the Illinois Department of Revenue (Department) unlawfully sought to recover taxes and penalties for a deficiency from 1988 by employing the federal change provisions of the Illinois Income Tax Act (Act) (35 ILCS 5/101 et seq. (West 1996)) after adjustments were made to its return by the Internal Revenue Service (IRS). We hold that because of the IRS's upward adjustment of the railway's 1988 taxable income, the Department could properly assess the railway for resulting deficiencies. We therefore reverse and reinstate the Department's decision. I. BACKGROUND The railway is a railroad operating in Illinois from its principal place of business in Creve Couer. In 1980 the railway entered into an agreement to borrow federal funds for improvements as permitted under the Railroad Revitalization and Regulatory Reform Act (45 U.S.C. |