When you contributed to your 401 K your income on your W-2 was reduced by that amount and you didn't pay taxes on it.  Now,  because the money was taken out.  The IRS wants the taxes.  In addition, if you're not 59 1/2 when it comes out, you will pay an additional 10% penalty.

The only thing you could have done is to transfer (roll it over) into an IRA.  Unfortunately, that is not an option now.

Or there is an exception to the 10% Early Withdrawal Penalty if you were 55 or older when you left that job.

Sorry if you owe the 10% Early Withdrawal Penalty you had 60 days to roll it over to a IRA to avoid the tax and penalties.