diff --git a/lib/standard-clojure-style.js b/lib/standard-clojure-style.js
index 177f2ee..d64cb80 100644
--- a/lib/standard-clojure-style.js
+++ b/lib/standard-clojure-style.js
@@ -1208,6 +1208,9 @@
           const nodeTxtLength = strLen(nodeTxt)
           node._origColIdx = colIdx
           colIdx = colIdx + nodeTxtLength
+        } else if (isTagNode(node)) {
+          node._origColIdx = colIdx
+          colIdx = colIdx + 1
         }
       }
 
@@ -3407,7 +3410,6 @@
     let lineIdxOfClosingNsForm = -1
     let nsStartStringIdx = -1
     let nsEndStringIdx = -1
-    let taggedNodeIdx = -1
     let ignoreNodesStartId = -1
     let ignoreNodesEndId = -1
     let insideTheIgnoreZone = false
@@ -3438,6 +3440,11 @@
           insideTheIgnoreZone = false
         }
       } else {
+        // edge case: add '#' text to .tag nodes
+        if (isTagNode(node)) {
+          node.text = '#'
+        }
+
         // record original column indexes for the first line
         if (idx === 0) {
           nodesArr = recordOriginalColIndexes(nodesArr, idx)
@@ -3453,7 +3460,7 @@
 
         const currentNodeIsWhitespace = isWhitespaceNode(node)
         const currentNodeIsNewline = isNewlineNode(node)
-        const currentNodeIsTag = isTagNode(node)
+
         let skipPrintingThisNode = false
 
         if (isStandardCljIgnoreKeyword(node) && idx > 1) {
@@ -3550,20 +3557,11 @@
           }
         }
 
-        // flag the index of a tagged literal node so we can mark the next one if necessary
-        if (node.name === '.tag') {
-          taggedNodeIdx = idx
-        }
-
         // add nodes to the top of the parenStack if we are on the opening line
         const topOfTheParenStack = stackPeek(parenStack, 0)
         if (topOfTheParenStack && nodeContainsText(node)) {
           const onOpeningLineOfParenStack = lineIdx === topOfTheParenStack._parenOpenerLineIdx
           if (onOpeningLineOfParenStack) {
-            if (taggedNodeIdx === dec(idx)) {
-              node._nodeIsTagLiteral = true
-            }
-
             node._colIdx = colIdx
             node._lineIdx = lineIdx
             stackPush(topOfTheParenStack._openingLineNodes, node)
@@ -3677,21 +3675,16 @@
                 while (searchForAlignmentNode) {
                   const openingLineNode = topOfTheParenStack._openingLineNodes[openingLineNodeIdx]
                   if (openingLineNode) {
-                  // Is the first node on this new line vertically aligned with any of the nodes
-                  // on the line above that are in the same paren stack?
+                    // Is the first node on this new line vertically aligned with any of the nodes
+                    // on the line above that are in the same paren stack?
                     if (pastFirstWhitespaceNode && isNodeWithNonBlankText(openingLineNode) && openingLineNode._origColIdx === numSpacesOnNextLine) {
-                    // Rule 3 is activated 👍
+                      // Rule 3 is activated 👍
                       topOfTheParenStack._rule3Active = true
 
                       // NOTE: we use the original _colIdx of this node in order to determine Rule 3 alignment,
                       // but we use the _printedColIdx of this node to determine the number of leading spaces
                       topOfTheParenStack._rule3NumSpaces = openingLineNode._printedColIdx
 
-                      // edge case: align tagged literals to the # char
-                      if (openingLineNode._nodeIsTagLiteral) {
-                        topOfTheParenStack._rule3NumSpaces = dec(openingLineNode._printedColIdx)
-                      }
-
                       // we are done searching at this point
                       searchForAlignmentNode = false
                     } else if (!pastFirstWhitespaceNode && isWhitespaceNode(openingLineNode)) {
@@ -3797,15 +3790,13 @@
           skipPrintingThisNode = true
         } // end currentNodeIsNewline
 
-        if ((nodeContainsText(node) || currentNodeIsTag) && !skipPrintingThisNode) {
+        if (nodeContainsText(node) && !skipPrintingThisNode) {
           const isTokenFollowedByOpener = isTokenNode(node) && nextTextNode && isParenOpener(nextTextNode)
           const isParenCloserFollowedByText = isParenCloser(node) && nextTextNode && (isTokenNode(nextTextNode) || isParenOpener(nextTextNode))
           const addSpaceAfterThisNode = isTokenFollowedByOpener || isParenCloserFollowedByText
 
           let nodeTxt = node.text
-          if (currentNodeIsTag) {
-            nodeTxt = '#'
-          } else if (isCommentNode(node)) {
+          if (isCommentNode(node)) {
             if (commentNeedsSpaceInside(nodeTxt)) {
               nodeTxt = strReplaceFirst(nodeTxt, /^(;+)([^ ])/, '$1 $2')
             }
diff --git a/test_format/format.eno b/test_format/format.eno
index dfeaafc..8df5bf7 100644
--- a/test_format/format.eno
+++ b/test_format/format.eno
@@ -2093,3 +2093,47 @@ bbb ;; bar
    ;; bar
    ,])
 --Expected
+
+# GitHub Issue #165 - tag literal alignment 1
+
+--Input
+(case
+  #uuid "96bbb029-40e7-4566-83d5-7e6088a908fc" :a
+  ;; a comment
+  #uuid "148ccf8b-6122-4435-9a39-001e13a8aad7" :b)
+--Input
+
+--Expected
+(case
+  #uuid "96bbb029-40e7-4566-83d5-7e6088a908fc" :a
+  ;; a comment
+  #uuid "148ccf8b-6122-4435-9a39-001e13a8aad7" :b)
+--Expected
+
+# GitHub Issue #165 - tag literal alignment 2
+
+--Input
+(foo bar #aaa "aaa"
+              ;; bbb
+           :ccc)
+
+(foo bar #aaa "aaa"
+         ;; bbb
+         :ccc)
+
+  (foo
+        #aaa "aaa")
+--Input
+
+--Expected
+(foo bar #aaa "aaa"
+              ;; bbb
+              :ccc)
+
+(foo bar #aaa "aaa"
+         ;; bbb
+         :ccc)
+
+(foo
+  #aaa "aaa")
+--Expected