NEW YORK (1010 WINS) — Uber Eats withheld over $11,000 from an Upper East Side restaurant after a mishap with the Internal Revenue Service.
Deepak Ballaney, chef and owner of International Wings Factory, had an unpaid $498.97 debt with the IRS after the restaurant's accountant mistakenly filed a late 2020 tax return, the New York Post reported.
The IRS subsequently placed a lien on the eatery's accounts and contacted their vendors, including Uber Eats, ordering them to pay the IRS first from funds owed to the International Wings Factory.
Uber Eats continued to withhold profits from takeout delivery orders for the whole month of November, leaving Ballaney in a financial bind.
After reaching out to his Uber accountant representative earlier this month, Bellaney shared with the New York Post their response in a text message: "This is happening to other restaurants and the past few weeks have been incredibly slow due to the holiday season."
Facade of International Wings FactoryGoogle Street View
The New York Post reported that following their inquiries to Uber Eats about the matter, a check for $11,200 finally arrived at the restaurant on Tuesday.
Though the debacle has been resolved for Ballaney, other small businesses may be facing a similar situation. After being suspended for more than a year, the IRS restarted its collection enforcement efforts on small businesses.
