The IRS does not recognize hardship withdrawals as an exception to the 10% early distribution penalty.
The taxable amount of the withdrawal is entered on your tax return as ordinary income and taxed at your current tax rate. Any federal taxes withheld are entered on your tax return as a tax payment.
The 10% early distribution penalty is entered on your tax return as a tax liability.
If your total tax liabilities are greater than your total tax payments you will have taxes owed.
Go to this IRS website for an online payment agreement application - https://www.irs.gov/payments/online-payment-agreement-application
