you mean she received 1099M from her own S corp for commissions for her own services??? issuing a 1099m to a S corp officer, there are very few circumstances under which this would be appropriate. A corp officer is an employee of the corp, and she is generally paid wages or salary for services rendered to the corp as an employee on her W2. To the extent that an S Corp has net profits, those profits flow through to the shareholders in proportion to their ownership, and that information is reported on a sch Form K-1 of 1120S. If she, as an officer, has employee expenses, necessarily incurred in the ordinary course of business, then those expenses are reimbursed by the corp in exchange for the officer's providing a copy of the invoice or receipt for the expense to be reimbursed. These amounts are not reported to the IRS, except as part of the corporations 1120 S tax return.In sum, if her payments to herself are based upon the net profit of the corp, and she is also paying herself a reasonable salary for her services to the corp, then she is unlikely to have any difficulties with the IRS. Conversely, if she is paying herself no salary at all, and simply taking distributions from the corp to pay herself -- and thereby avoiding FICA and other payroll taxes as a consequence, then she could be audited and her salary could be reallocated to reflect the fair market value of her services to the corp.