  We investigate the large-scale structure of the local galaxy distribution
using the recently completed 2 Micron All Sky Survey (2MASS). First, we
determine the K-band number counts over the 4000 sq.deg. APM survey area where
evidence for a large-scale `local hole' has previously been detected and
compare them to a homogeneous prediction. Considering a LCDM form for the
2-point angular correlation function, the observed deficiency represents a 5
sigma fluctuation in the galaxy distribution. We check the model normalisation
using faint K-band data compiled from the literature; the normalisation used in
this paper is in excellent agreement, and the observed counts over the APM
survey area would require the model to be lowered by 3.8 sigma. However, the
issue is complicated by the b>20 and b<-20 2MASS counts which lie below the
best-fit model normalisation. Second, since the K-band counts over the APM
survey area continue to suggest the possible presence of excess clustering over
the LCDM prediction, we next probe the power at large scales by comparing the
2MASS and LCDM mock galaxy angular power spectra. We find a 3 sigma excess in
the 2MASS catalogue over the LCDM prediction at large scales (l<30). However,
this excess is not enough to account for the low counts over the APM survey
area. Finally, we apply a counts in cells analysis to the 2MASS data and mock
catalogues; on the assumption that the 2MASS catalogue at |b|>20 is
representative, we find excellent agreement between the biased LCDM mocks and
the 2MASS catalogue to 30 deg. The crux of the interpretation of these results
appears to be whether the 2MASS volume is yet big enough to constitute a fair
sample of the Universe. (abridged)
