Final answer:
In 2009, the IRS introduced a revised version of Form 990, which changed the original form from a financial report into a financial and governance report. The correct answer is option C.
Step-by-step explanation:
The revised version introduced by the IRS in 2009 that changed the original form from a financial report into a financial and governance report is Form 990. Form 990 is an annual informational return that must be filed by organizations exempt from income tax under section 501(a).
This change was part of the efforts to increase transparency and accountability for tax-exempt organizations. By expanding the reporting requirements, the IRS aimed to provide more detailed information about the organization's financial activities, governance structure, and other important aspects.
For example, the revised Form 990 includes sections that ask about policies and practices relating to governance, executive compensation, and conflicts of interest. These additional disclosures help the IRS and the public evaluate the organization's financial health.