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Wash tomatoes and basil under cold running water; drain.
Remove core and blossom ends from tomatoes.
Cut tomatoes into quarters.
Peel onion and chop; measure 1 cup chopped onion.
Peel garlic and mince.
Measure ¼ cup finely minced basil, discarding stems.
Sauté onion and garlic in a large saucepan until onion is transparent.
Add tomatoes and simmer 20 minutes, stirring occasionally.
Purée tomato mixture using an electric food strainer or food mill to remove peels and seeds.
Return purée to saucepan.
Stir in basil.
Cook purée, uncovered, over medium-high heat until reduced by half, stirring to prevent sticking.
Add ¼ teaspoon citric acid or 1 tablespoon bottled lemon juice to pint jar; add ½ teaspoon citric acid or 2 tablespoons bottled lemon juice to quart jar.
Ladle hot sauce into hot jar, leaving ½-inch headspace.
Remove air bubbles.
Clean jar rim.
Center lid on jar and adjust band to fingertip-tight.
Place jar on rack in boiling-water canner with simmering water (180°F).
Process pint jars 35 minutes or quart jars 40 minutes, adjusting for altitude.
Turn off heat and remove cover.
Let jars cool 5 minutes.
Remove jars from canner; do not retighten bands if loose.
Cool 12 hours.
Check seals.
Label and store jars.