Thanks for the reply.  

I do all the 8621 computations offline and then plug the numbers on the form.  So the 1291TAX that is added to the 1040 is correct.  However, since all my income on the return is from Foreign Sources, PTO assumes that the available tax credits from the 1116 can cover the total tax, i.e. regular tax + 1291TAX.  I my idea was to adjust the foreign income on the 1116 for the excess distribution amount that generates the 1291TAX but that still leaves some of the 1291TAX being credited with Foreign Tax Credits from the 1116.  It seems a better solution than eliminating the complete 1291TAX with FTC but still not 100% accurate in my estimation.  

For example: 

1291TAX = $1,000
1291 Interest = $50

Regular tax = $10,000
FTC Available = $13,000
Total Tax on Line 12a = $11,000

Regular FTC should cover $10,000
Net Tax Payable = $1,050 (TAX + INTEREST),  HOWEVER, PTO applies $11,000 of FTC available for Net Tax Payable = $50