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Thanks Letsgo8, for "taking one for the team"!

I had actually figured out that "work around" on my own but wasn't ready to commit quite yet.

I spoke with a rep from our accounting firm this morning;  officially, they stand behind the accuracy of form 7203 as provided.  Unofficially, after I explained the situation, he agreed that the work around is "ok" given that the end result is the same.  

IMO, based on my research, there is no doubt that there is a logic problem in TT's 7203 form!

I'm going to bite the bullet and e-file tomorrow with the work around - but I will be looking much harder at TT alternatives for next years go-around.

Thanks All.