Amazon Sees Taxes Hitting 2005 Profit

Amazon.com(AMZN Quote) said in a public filing that it expects 2005 net income to decline from the $588 million profit it posted in 2004 because of a tax provision.

"We expect net income for 2005 to decline because we expect a tax provision in 2005 rather than the large tax benefit we received in 2004," Amazon wrote in a 10-K statement filed on Friday. Amazon recorded a primarily noncash benefit last year of about $233 million, related mostly to valuing deferred tax assets.

"We expect our cash taxes paid in 2005 to be approximately $25 million, compared with $4 million in 2004 and $2 million in 2003," the company said. ...