There is a range of opinion out there on what constitutes regular or repeated and no hard and fast rule from the IRS.  

My parents are getting their bank accounts levied by the irs for not paying their income taxes.

Assuming that you're going to either flip the home or at some point want title insurance, there needs to be a resolution before you'll be able to get a warranty deed on the property (at least without an exception).There are variables to this of course, they don't last forever without the IRS refiling so the timing is important.

@Bob Bowling, I should probably just bite the bullet and hop on a plane to Hawaii to diagnose this issue in person...

IRS rules are pretty clear.

You can follow the link to access the rental income caluclation worksheet.https://www.fanniemae.com/content/guide_form/1037.xlsxGeneral Requirements for Documenting Rental IncomeIf a borrower has a history of renting the subject or another property, generally the rental incomewill be reported on IRS Form 1040, Schedule E of the borrower’s personal tax returns or onRental Real Estate Income and Expenses of a Partnership or an S Corporation form (IRS Form8825) of a business tax return.

You likely forgot one thing though… taxes.The IRS treats flipping as if it were a job.

I find out today or tomorrow what the IRS excepted my business name to be.

@Dallas Jacobsen Just one more thing, you may qualify for the Homeowners Exemption under Publication 523 of the IRS code (https://www.irs.gov/publications/p523/index.html) but you'll have to pay capital gains tax on the depreciation recapture that the IRS requires you to take as part of your annual tax filings.So, let's say you've taken $15k in depreciation since converting the property to a rental.  

like all businesses, you have to keep track of EVERYTHING. when the IRS sends you one of their famous letters, you shouldn't try to tell them....