It looks like with verbatim environment using of 'taggedblock' environment in \newcommand causes scanning error (File ended while scanning use of \next)
\documentclass[a4paper, oneside, 12pt]{extreport}
\usepackage{tagging}
\newcommand{\mycommand}{%
Some text.
\begin{taggedblock}{tag}
Tagged text.
\end{taggedblock}
}
\begin{document}
\mycommand{}
\end{document}