you could just reduce the "amount of foreign tax paid" shown on your 1099, by the amount of the carryover amount. It certainly wouldn't constitute fraud, since you're foregoing future tax benefits and paying more taxes than you owe. But I have no idea as to whether the IRS rejects returns if the amount that you input for a 1099 form doesn't match what is on the forms that they receive, even if it is more favorable for the IRS.
