Could be bryozoan, they exist in different colors and shapes, including encrusting growth. You can see varieties through Image Search.
I had red bryozoans too:
In front is Red Horn Bryozoan (likely
Tubular Horn Bryozoan, Schizoporella Violacea), on the left - Red Bryozoan, according to the LFS. Very knowledgeable guy, who did the ordering. He told, that they were offered to him as a trial, but that they do not live long in the tanks, because they are the filter feeders, like flame scallops.
Here is close up of the left one, compare to yours:
Mine were hard, chitinous, and bumpy, because this is a colony of individual zooids, deep red in folds, bright red on the elevations. I can't find picture right now (my old photos are on too many CDs), but if you take a close look from the side, you should be able to see the cilia. Some magnification will be necessary.
Nutrition Requirements:
Bryozoans are suspension feeders. Each zooid within a colony has ciliated tentacles which are extended to filter phytoplankton, unicellular algae, and bacteria from the water column. It is estimated that each zooid can clear approximately 1/3 of a fluid ounce of water per day.
(
link to other bryozoan description, pdf file.
Another one:
like all bryozoans, is a suspension feeder.
Each individual zooid in a colony has ciliated tentacles that are extended to filter phytoplankton less than 0.045 mm in size (about 1/1800 of an inch) from the water column. Bullivant (1967; 1968) showed that the average individual zooid in a colony can clear 8.8 ml of water per day.
(
link).
They are described as resistant to pollution (unlike the many other filter feeders) and low oxygen levels, able to grow downstream of sewage plants (
link ). That makes them a good candidates for a non-photosynthetic tank (but they are not coral, this forum name excludes sponges, tube anemones, flame scallops and bryozoans, alas).
Unfortunately, from my short term experience with these two red bryozoans, they are not tolerant to being smothered by hair algae. Repeated scrubbing off if not kills, then causes them to decline.
MicroVert as a food, even maybe suitable by size, was not sufficient. The size of food is likely to be as for sponges, significantly less, then for Dendronephthya, and be not only phytoplankton.
One more quote:
Their diet consists of small microorganisms, including diatom s and other unicellular algae
(
link).
Some biology, ecology and schematic drawings of the internal structure are
here.
A lot of information is available about bryozoans on the web, the problem is ID the particular one, I did that by checking websites and comparing pictures, one by one.
Mine had a piece of colony aside the main colony, could be the broken piece, but it didn't survived too.