@Anonymous
Congratulations. Your logic is sound and it is quite reasonable to me. Some of my thoughts are as follows:
1. The IRS has accepted your return and this is good.
2. Just in case, if your return gets audited, it would detect absence of Form 1116, Schedule B, a requirement beginning 2021 filings.
3. If a human checks it, she/he would see the F1116 C/O sheet and if it is a simple "passive income" category, it is essentially the same info as it would be documented in the Form1116, Schedule B and hence it is a done deal.
4. Not all IRS auditors make sense and you may get a letter. If so, produce the carryover sheet from your 2021 return, maybe a filled Form 1116, Schedule B (same info again) with a cover letter at that time.
I must admit you are a very smart person and enjoy the left over Sunday. What made you think your method might work? "Attempt a override, cut & but do nothing" - really smart moves !!
