It depends, if she owned and lived in the house for at least two of the last five years before the sale then up to $250,000 profit is tax-free. Sounds like she sold it for $47,000 and therefore would not have to file, solely based on the sale of the residence.
A 1099-S is NOT required if the seller certifies that the sale price is for $250K or less and the sale is for their principal residence. Just because she received a form 1099-S does not make it mandatory to file if the requirements mentioned above are met.
Tax Aspects of Selling a Home
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