I believe you do need to include the sale and taxes paid in your return. The fact that you did not get the money doesn't matter. You got the larger amount of RSU's, minus the taxes paid = Net smaller number of shares. It's the same as if you had received the larger amount of shares and then sold some to pay the taxes, leaving you with the number amount of shares.
With the current fall in the Stock Market, you should pay the tax with cash and not sell the shares because the share prices are so low. In a few months when this all settles down, we are optimistic that the market will again rise. You can than sell the shares at a higher price
