I found the answer to my question. the PTO was not calculating the proper Self Employment tax for the citizen partner nor for the foreign partner. There was a loss coming from another partnership where this partnership had a 50% interest. I did enter the ordinary loss from that other partnership under Sch K, "Passthrough K-1's but had forgotten to enter the same loss as a Self Employment tax loss on line 14(A). Since I had not entered this loss under line 14(A), the Self employment tax income on the Sch K of the main 1065 was calculating a higher possitive amount than the income amount on line 1 of Sch K.

Once I entered the SE Tax loss amount, it resolved the issue.