You do not report the contribution, because it is as if it never happened.
You do report the earnings on your 2023 return (this year). You can create a "substitute 1099-R" to report the dollar amount (actually, 2 substitute 1099-Rs, one for each spouse's account). Use code J for the distribution code in box 7. The distributed earnings may be subject to income tax and a 10% penalty, depending on your age and how long ago you opened the IRAs.
Then, next year, the 1099-R you receive will have code P, meaning a distribution of earnings due to a corrective withdrawal that was taxable in the previous year. You include it on your return but you won't pay tax again.
