I think a phantom Schedule E like that will increase the chances of an audit:

1)  Higher positive income before deductions.

2)  Schedule E expenses extraordinarily high compared to revenue.

Hundreds of publishers issue thousands of 1099s to authors or their agents, showing royalty income in Box 2.  Has anyone ever seen a CP-2000 asking for a Schedule E, when it's reported on Schedule C?  What writers do, is write.  I think if it happened, someone would have written about it.  

I would think twice about preparing an extra form (do you charge for it?) without advising the client that it might inspire more questions from IRS, than it prevents.