I received interest payment from IRS of $18.12, if I need to report this how do I.

use a 1099-INT.  Payor is the US Treasury. it is not exempt from state taxation. so it gets entered on line 1/taxable not the line for US Gov't interest. 

Yes, enter the interest from the IRS under Wages and Income
Scroll down to Investments and Savings and click on Show More
Click Start or Revist under Interest on 1099-INT 
Click on Add Investments

Click the Enter a Different Way button

On the OK, let's start with one investment type screen select Interest 1099-INT and click Continue
Select Type it in myself

Enter IRS in the Payor field and the amount in Box 1
Leave Box 3 blank