Bring small pot of water to a boil. While waiting for the water to boil, cut an “X” shape on bottom of each tomato (see above image). This will help the skin remove easily. Once the water is boiling, place the tomatoes in the water for about 30 seconds. Remove the tomatoes and place into bowl of ice water to stop the cooking. Once cool enough to handle, remove the skin and discard. The skin should basically fall off of the tomatoes. Cut tomatoes in half, remove extra seeds from the tomatoes and discard. Set the tomatoes aside.
Heat olive oil in skillet over medium-high heat. Add onion and let saute 4-5 minutes. Add garlic and saute about 1 more minute. Add seeded tomatoes and break apart a bit with a spoon. Add the oregano, basil, sugar, crushed red pepper, and salt & pepper.
Let simmer for about 30 minutes, stirring occasionally.
Transfer to blender to blend or blend with handheld blender in the skillet (this option can get messy) if you want a smoother texture.