Hi Jason - I thought 1031 exchange on a fix and flip is not allowed by the IRS? 

I am an Enrolled Agent licensed by the IRS and specialize in real estate taxation.  

Shoot me a DM and we can hop on a call.

Apply for and receive from the IRS a notice of non-recognition of gain resulting in no withholding the FIRPTA amount.2.

Are these huge red flags for the state tax commissions and the IRS?

The IRS requires that the same taxpayer who sold the relinquished property must purchase the replacement property.

About 5 years ago we hopped in a RE syndication and pulled out of it recently to take a more active role in our investing (returns where meh), along with trying to supercharge our financial goals in retiring early. 

For more info on the tax incentives, read about Act 20 and Act 22.Additionally, the IRS recently designated almost the entire territory of Puerto Rico as an Opportunity Zone. 

It’s an IRS RULE.

The IRS loses cases... lots of them.