Fortune wrote “Amazon Will Pay a Whopping $0 in Federal Taxes on $11.2 Billion Profits.” How does it do this? User LisaDziuba2 writes: I read the article trying to find a reason why and didn't get an answer.. So I logged into my investor account and discovered that there is a provision for Amazon to pay $1.354 Billion in Corporate income tax... and that is calculated in the Normalized income available to common shareholders. So I'm not too sure what the article is talking about... That is an income statement... so then I looked at the balance sheet... It looks to have been deferred from depreciation. Balance sheet accounting is difficult to understand, but I believe that they can defer the income tax to depreciate assets. Because of the large depreciation write down, uou have to really question how much of the $11.2 billion is actually profit. Looking at AMZN their book value is about $40 billion, yet the market capitalization is nearly $800 billion. 20x that. I think it's overvalued still after a 20% haircut. The main reason they don't pay any tax is because they don't make any money. AMZN is a paper tiger. Related: FANG or $FB, $AAPL, $NFLX, $GOOGL $GOOG