Yes, if you prefer to close the account then you can do this and will get a 1099-R 2021 for your distribution that you will include on your 2021 return. After you entered your 1099-R please make sure you answer all follow up questions in regards to the Roth IRA, so only the contribution amounts will be excluded from taxable income.
Please be aware you still get the 1099-R 2021 for the withdrawal of excess contribution and earnings which will have to be entered on your 2020 amended return (unless you reported it already on your original 2020 return by creating a 1099-R).
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