Black smoke pours out of Internal Revenue Service building in Washington, DC; evacuation underway. Fire breaks out at IRS building: report. A transformer fire broke out Monday in the IRS building, NBC Washington reported. The building at 1111 Constitution Ave. NW was evacuated. The fire broke out in the basement of the building and caused traffic closures in the area. there were no injuries, but 12th Street is closed at Constitution Avenue. Officials confirmed there were no injuries during the fire and the building was completely evacuated. Pepco arrived on the scene and is working to cut power to the area. Pepco says once the power is cut they can make entry to ensure the fire is completely knocked out.