Exactly my reservation with using something like this! the US still classifies virtual currency as Property NOT currency! This is a HUGE problem when trying to use crypto to buy things where there will be a paper trail that the US govt can get ahold of it.
They can also just check your PayPal account balance. And your blockchain. Every transaction using Bitcoin is public.
I guess PayPal will provide a tax report? Otherwise could be a nightmare.
In US I can imagine that the exported transactions can be imported to a software that understands Bitcoin taxation. But outside US? It's a crazy world....I rather stay with big buys/sells/borrows until taxation is resolved.