When I have to report capital gains, do you think I record all that stuff myself? No. I go to turbotax.com, type in the name of my brokerage and credentials and it imports it all for me. Software. There's nothing fundamentally different about bitcoin that it can't be reported the same way.
I have never been able to get my brokerage to interopt with H&R Block and never was worth the time to figure out. That you figured out how to get interoption is great for you, but fact is there is a huge amount of Murphy's Law involved and this won't scale.
One of Steve Jobs favorite analysis and putdowns to very smart people was, "that won't scale". I know because
my former genius boss says Steve did it to him.
Interoperation friction destroys scaling.
You aren't using your broker to do that for Bitcoin now, so you must be doing it manually. Or you are not reporting your small Bitcoin transactions.
I have often wondered if many are setting themselves up to be destroyed by the IRS by not reporting small BTC transactions.
I believe the dying socialism will use every little violation to rip us apart.
My perspective is viewed as too extreme and paranoid.