The very best bet in most cases, and in particular yours, is to just buy a complete new bushing with the new seal already installed. It's highly likely that the current bushing is not going to seal around the outer edge of the new seal anyway. Whenever I have to replace a shift shaft seal, it get a new bushing... The old one goes straight in the bin (or the box of replaced parts that are returned to the owner)...
To clean up the threads in the housing, you're going to need a thread file, not a tap. A tap that size will be VERY expensive.
Chris......