If this is an early withdrawal, the bank will withhold the taxes and penalties. Some banks will allow you to sign a waiver for the penalty indicating that you acknowledge that you are responsible for any early withdrawal penalty.
At the end of the year, the tax forms take you through the process of indicating that you had a distribution (you will receive a 1099-r) and that will indicate early distribution.
If the bank withheld all taxes (traditional IRA) and penalties (Roth and traditional) then you would be reimbursed for any excess at the end of the year.
If the bank does not,then you would pay any taxes and penalties at the end of the year.
MOST banks and IRA administrators withhold all taxes and penalties at the time of distribution.