Are there consequences if I sent a 1099 to a corporation?

[ValerieR]

We pay contractors with direct deposit through Quickbooks and you are only allowed to use direct deposit through Quickbooks for employees or 1099 vendors.  I have a couple that I didn't realize were set up as S Corporations when I set them up for direct deposit.    I'm going to go ahead and issue them 1099s since I used direct deposit  through Quickbooks although it really shouldn't be necessary for an S corporation.  Are there any penalties or other consequences for issuing 1099s when you don't need to?

[DawnC]

No.  It is only a problem if you fail to include a necessary 1099.