While it's diffcult to diagnose without an actual inspection, typically trees will decompartmentalize, or 'seal off' their wounds on their own. Adding paper or any other sealer to the hole, typically will not act as a 'band-aid' to help the tree heal. There is no significnt research that pruning tar, for example, aids in a tree's ability to recover. Best advice ould be to have a Certified Tree Expert or ISA Certified Arborist inspect the tree and offer specific recommendations.