Should I report interest from IRS?

Yes, you should report this interest on your return.

This is almost certainly interest that had accrued on a federal income tax refund that you received late from the IRS.  See When does the IRS pay Interest? on their Interest page for more information.

To enter in TurboTax Online:

1. If you don’t see 2022 TAXES in the left pane, select the dropdown to the right of Income & Expenses on the Hi, let’s keep working on your taxes! page and then select Let’s get started, Pick up where you left off, or Review/Edit.  Otherwise, in the left pane, select Federal, then Wages & Income (This is labelled Income & Expenses in TurboTax Self-Employed)
2. Scroll down and select the Show more dropdown to the right of Investments & Savings 
3. Select Start or Revisit to the right of Interest on 1099-INT
4. Select Yes on the Did you receive any investment income? screen, then select Continue
   • If you see either the Your investments & savings or Here's your 1099-INT info screen, select Add investments or Add another 1099-INT as appropriate, then select Continue
5. On the next screen, choose how to enter your Form 1099-INT data
   • Select Enter a different way, and follow the instructions to enter your 1099-INT, then select Type it in myself on a subsequent screen

From there, you should be able to enter your 1099-INT data.

Enter interest from the IRS like a 1099Int and put the amount in box 1. Enter it manually and just enter IRS for the payer. Don't enter any other info like the address or a EIN.

Federal
Wages & Income
Interest and Dividends
Interest on 1099INT - Click the Start or Update button

Put the interest amount in box 1