Yes, you can report the interest item so that the IRS information return matching program will find it, and make an adjustment to the item to subtract it with an explanation as mentioned previously.
You returned the check, so the doctrine of constructive receipt isn't applicable in that situation. Use constructive receipt to determine when an item of income you received is taxable.
For example, if you receive a check in the mail that includes taxable income at the end of 2024, but you don't deposit it into a bank account until 2025, it's still taxable in 2024.
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