Damon Dash, co-founder of Roc-A-Fella Records, faces significant tax debt and legal obligations as his ownership stake heads to auction.

The New York Department of Taxation & Finance reveals Dash owes $8.7 million in unpaid taxes from 2005-2018. This revelation comes just before the August 29 auction of his 33.3% stake in Roc-A-Fella Records, set to be conducted by the United States Marshals Service.

The auction, taking place in Manhattan with a minimum bid of $1.2 million, stems from an $823,000 judgment against Dash in a lawsuit by movie producer Josh Webber. The proceeds will be distributed in order of priority:

1. Department of Social Services ($145,096 in child support)
2. New York State Tax Department (seeking priority for $8.7 million debt)
3. Other creditors

The stake being auctioned primarily includes rights to Jay-Z's debut album "Reasonable Doubt," as the label dissolved in 2013. New York tax authorities view this auction as potentially their last opportunity to recover some of Dash's long-standing tax debt.

This auction represents a significant moment for the historic hip-hop label, marking another chapter in the complex financial and legal challenges facing one of its founding members.

Note: Photo Credit: TRE Productions / CC by 4.0

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