The problem is not what the IRS wants, but that the software does not work when one tries to provide what the IRS wants. The calculation of the allowable credit is the same whether it is reported as multiple countries or a single country. The solution is to do a spread sheet and bunch all of your credits and report them all as one country, which means to enter a separate 1099 Div for each country as to which you had a foreign tax withheld from your dividends and then report it to the 1116 as a single country.
