Im not sure what the IRS stance on this is, Id be tempted to put it on the return (to avoid the CP2000 in a couple years) then back it out on the Other Income line.  then be prepared to send a letter to IRS if need be in the future.

You can report UI fraud here, will give yua  record of reporting the fraud.

https://www.identitytheft.gov/

Upper right corner has a UI fraud link