Form W-7 is used for which purpose?

Form W-7 is specifically designated as the application for the IRS Individual Taxpayer Identification Number (ITIN). This form is utilized by individuals who are required to have a taxpayer identification number but are not eligible for a Social Security Number (SSN). This includes foreign nationals, non-resident aliens, and individuals who are dependents or spouses of U.S. citizens or resident aliens.

The purpose of Form W-7 is to facilitate the process of obtaining an ITIN, which is essential for tax reporting and compliance, allowing the IRS to accurately identify and track taxpayers who are not eligible for SSNs. This is particularly important for ensuring that all individuals, regardless of their immigration status, have a means to fulfill their tax obligations.

In contrast, the other options relate to different functions that do not align with the purpose of Form W-7. For instance, the application for an employer's Federal ID, the Social Security Number application, and the approval of federal tax exemptions are governed by different forms and processes altogether. Each is specifically tailored to different tax identification needs.