This is a very profitable business and the ration of Wages to Distributions is about 1:2. So that will be a flag.

Considering the IRS situation, I think a RC analysis would be overkill. But now that I have alerted them to this, they said "just give us the wage amounts you think are reasonable." So I don't know if I want to back out of this project now.

At worst, I lose a client.