Cutting anything off on an arbitrary whim is a bad move. Start by running the tailstock quill out an inch and see what difference that makes. Then you have a point to make judgement from. Keep in mind that if you cut off a quarter inch for one tool that the other tools that do fit right, now won't. Reaming is sometimes the only answer. But again, if you ream the quill, you make it bigger, not smaller. Use some marking fluid and a known good MT shank to see if there is a burr inside. If so, then ream just enough to remove the burr.
What you are facing is where someone in the past may have reamed a little too heavy and made the quill oversized. At one time, I had 3 lathes with MT-2 tailstocks. And a couple of drill presses. . . In most cases on the lathes, the problem I had was the MT-2 shank wouldn't go in deep enough to release when I cranked the quill in all the way. Rather than reaming, I fiddled around to find what wouldn't seat deep enough and extended the small end a little to make it work right. What you are describing is just the opposite. As though someone in the past faced the same problem and solved it by making the quill larger. Depending on the tooling involved, it might be simpler (cheaper?) to replace the shank.