diff --git a/diktat-rules/src/main/kotlin/org/cqfn/diktat/ruleset/rules/kdoc/KdocFormatting.kt b/diktat-rules/src/main/kotlin/org/cqfn/diktat/ruleset/rules/kdoc/KdocFormatting.kt
index 1cbf3bd793..77e036eb4d 100644
--- a/diktat-rules/src/main/kotlin/org/cqfn/diktat/ruleset/rules/kdoc/KdocFormatting.kt
+++ b/diktat-rules/src/main/kotlin/org/cqfn/diktat/ruleset/rules/kdoc/KdocFormatting.kt
@@ -76,8 +76,6 @@ class KdocFormatting(private val configRules: List<RulesConfig>) : Rule("kdoc-fo
         emitWarn = emit
         fileName = node.getRootNode().getFileName()
 
-        val declarationTypes = setOf(CLASS, FUN, PROPERTY)
-
         if (node.elementType == KDOC && isKdocNotEmpty(node)) {
             checkNoDeprecatedTag(node)
             checkEmptyTags(node.kDocTags())
@@ -278,7 +276,7 @@ class KdocFormatting(private val configRules: List<RulesConfig>) : Rule("kdoc-fo
         }
     }
 
-    @Suppress("UnsafeCallOnNullableType", "TOO_LONG_FUNCTION")
+    @Suppress("UnsafeCallOnNullableType", "TOO_LONG_FUNCTION", "ComplexMethod")
     private fun checkNewLineAfterSpecialTags(node: ASTNode) {
         val presentSpecialTagNodes = node
                 .getFirstChildWithType(KDOC_SECTION)
@@ -304,13 +302,13 @@ class KdocFormatting(private val configRules: List<RulesConfig>) : Rule("kdoc-fo
                         node.removeChild(node.lastChildNode)  // KDOC_LEADING_ASTERISK
                         node.removeChild(node.lastChildNode)  // WHITE_SPACE
                     }
-                    if (node.lastChildNode.elementType != KDOC_LEADING_ASTERISK) {
+                    if (node.treeParent.lastChildNode != node && node.lastChildNode.elementType != KDOC_LEADING_ASTERISK) {
                         val indent = node
                                 .prevSibling { it.elementType == WHITE_SPACE }
                                 ?.text
                                 ?.substringAfter('\n')
                                 ?.count { it == ' ' } ?: 0
-                        node.addChild(LeafPsiElement(WHITE_SPACE, "\n${" ".repeat(indent)}"), null)
+                        node.addChild(PsiWhiteSpaceImpl("\n${" ".repeat(indent)}"), null)
                         node.addChild(LeafPsiElement(KDOC_LEADING_ASTERISK, "*"), null)
                     }
                 }
diff --git a/diktat-rules/src/test/kotlin/org/cqfn/diktat/ruleset/smoke/DiktatSmokeTest.kt b/diktat-rules/src/test/kotlin/org/cqfn/diktat/ruleset/smoke/DiktatSmokeTest.kt
index 2dceac75a0..3f85f87cb3 100644
--- a/diktat-rules/src/test/kotlin/org/cqfn/diktat/ruleset/smoke/DiktatSmokeTest.kt
+++ b/diktat-rules/src/test/kotlin/org/cqfn/diktat/ruleset/smoke/DiktatSmokeTest.kt
@@ -96,6 +96,12 @@ class DiktatSmokeTest : FixTestBase("test/smoke/src/main/kotlin",
         fixAndCompare("Example3Expected.kt", "Example3Test.kt")
     }
 
+    @Test
+    @Tag("DiktatRuleSetProvider")
+    fun `smoke test #4`() {
+        fixAndCompare("Example4Expected.kt", "Example4Test.kt")
+    }
+
     @Test
     @Tag("DiktatRuleSetProvider")
     fun `regression - should not fail if package is not set`() {
diff --git a/diktat-rules/src/test/resources/test/paragraph2/kdoc/KdocFormattingFullExpected.kt b/diktat-rules/src/test/resources/test/paragraph2/kdoc/KdocFormattingFullExpected.kt
index 54b5583235..aa36ac1821 100644
--- a/diktat-rules/src/test/resources/test/paragraph2/kdoc/KdocFormattingFullExpected.kt
+++ b/diktat-rules/src/test/resources/test/paragraph2/kdoc/KdocFormattingFullExpected.kt
@@ -17,3 +17,10 @@ class Example {
     @Deprecated(message = "Use testNew")
     fun test(a: Int): Int = 2 * a
 }
+
+class Foo {
+    /**
+     * @implNote lorem ipsum
+     */
+    private fun foo() {}
+}
diff --git a/diktat-rules/src/test/resources/test/paragraph2/kdoc/KdocFormattingFullTest.kt b/diktat-rules/src/test/resources/test/paragraph2/kdoc/KdocFormattingFullTest.kt
index 78ffb4bdcc..daaa408802 100644
--- a/diktat-rules/src/test/resources/test/paragraph2/kdoc/KdocFormattingFullTest.kt
+++ b/diktat-rules/src/test/resources/test/paragraph2/kdoc/KdocFormattingFullTest.kt
@@ -17,3 +17,10 @@ class Example {
      */
     fun test(a: Int): Int = 2 * a
 }
+
+class Foo {
+    /**
+     * @implNote lorem ipsum
+     */
+    private fun foo() {}
+}
diff --git a/diktat-rules/src/test/resources/test/paragraph2/kdoc/SpecialTagsInKdocExpected.kt b/diktat-rules/src/test/resources/test/paragraph2/kdoc/SpecialTagsInKdocExpected.kt
index 8410afedcd..c50aaf35a8 100644
--- a/diktat-rules/src/test/resources/test/paragraph2/kdoc/SpecialTagsInKdocExpected.kt
+++ b/diktat-rules/src/test/resources/test/paragraph2/kdoc/SpecialTagsInKdocExpected.kt
@@ -9,7 +9,6 @@ class SpecialTagsInKdoc {
      * @implSpec bar
      *
      * @implNote baz
-     *
      */
     fun test() = Unit
 }
diff --git a/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example3Expected.kt b/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example3Expected.kt
index 231a5813b9..32d8804eda 100644
--- a/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example3Expected.kt
+++ b/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example3Expected.kt
@@ -45,3 +45,10 @@ class Example {
     }
 }
 
+class Foo {
+    /**
+     * @implNote lorem ipsum
+     */
+    private fun foo() {}
+}
+
diff --git a/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example3Test.kt b/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example3Test.kt
index cefa503487..ddd801edf8 100644
--- a/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example3Test.kt
+++ b/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example3Test.kt
@@ -40,3 +40,12 @@ class Example {
             foo()
     }
 }
+
+
+class Foo {
+    /**
+     * @implNote lorem ipsum
+     */
+    private fun foo() {}
+}
+
diff --git a/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example4Expected.kt b/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example4Expected.kt
new file mode 100644
index 0000000000..79589c1926
--- /dev/null
+++ b/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example4Expected.kt
@@ -0,0 +1,16 @@
+package org.cqfn.diktat
+
+class SpecialTagsInKdoc {
+    /**
+     * Empty function to test KDocs
+     * @apiNote foo
+     *
+     * @implSpec bar
+     *
+     * @implNote baz
+     *
+     * @return
+     */
+    fun test() = Unit
+}
+
diff --git a/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example4Test.kt b/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example4Test.kt
new file mode 100644
index 0000000000..df836479f9
--- /dev/null
+++ b/diktat-rules/src/test/resources/test/smoke/src/main/kotlin/Example4Test.kt
@@ -0,0 +1,15 @@
+package org.cqfn.diktat
+
+class SpecialTagsInKdoc {
+
+    /**
+     * Empty function to test KDocs
+     * @apiNote foo
+     * @implSpec bar
+     *
+     *
+     * @implNote baz
+     */
+    fun test() = Unit
+}
+