Hi Craig,
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Yes, that is quite high.� How does the liquid look?� Does it look like clean ATF fluid?� Or does it look darker and heavier?� I would still start with first checking the diff oil via the fill plug - you never know, some knucklehead could have filled it with ATF fluid.� If the fluid looks like a mix, then more than likely the seals between the diff and tranny are leaking and will need to be replaced.� In rare cases if could be the seal for the governor, but this is rare.
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If the fluid is clean and someone simply overfilled it, drain out the appropriate amount by loosening the fill tube from the pan.